return icon Vietnamnet.vn

Business community urges removal of luxury tax on petrol

The Vietnam Confederation of Commerce and Industry (VCCI) has proposed removing the luxury tax in addition to a cut in the environmental protection tax to help lower petrol prices, which are at a historic high.

VCCI made the proposal when offering suggestions to the draft resolution on the environmental protection tax applied to petrol, oil and lubricant compiled by the Ministry of Finance (MOF).

The organization agreed with the urgency of the reductions of tax obligations on petroleum products. It said this is the foundation for Vietnam to curb inflation, stabilize the macro economy, support business and recover the economy. 

Regarding the environmental protection tax, VCCI said the cut can be implemented in July 2022 because this is within the competence of the National Assembly’s Standing Committee. This is the advantage of the measure to adjust petroleum prices.

VCCI supports the MOF’s proposal on cutting the environmental protection tax by VND500-1,000 per liter, saying that these are the sharpest possible tax cuts within the competence of the committee. 

If the Government wants to cut luxury tax and value added tax (VAT), it would have to wait for the next National Assembly session, slated for late 2022. If so, the goals of controlling inflation and stabilizing the macro economy this year would be unattainable.

VCCI has proposed that MOF continue to study and consider the possible impact of the luxury tax removal on petrol and report to the National Assembly’s next session.

Regarding the cutting of tariffs on petroleum products, VCCI noted that MOF has not clearly explained why it has not chosen  the measure. The measure can be easily taken as it is within the competence of the Government and it can be done in July. 

According to VCCI, in its statement, MOF mentioned Vietnam’s commitments in free trade agreements (FTA), and believes that Vietnam should not adjust FTA tax rates on petroleum products, and should continue to implement the current tax cut roadmap.

However, VCCI checked the agreements and realized that these are commitments on maximum import tax rates that Vietnam is allowed to apply. 

It affirmed that the FTAs allow Vietnam to lower import tariffs and then raise the tariffs back to the committed levels when necessary.

VCCI has asked MOF to consider cutting import tariffs or give more detailed explanation about measures to force petrol prices down.

The petrol price is now at an all-time high after the latest price increase on June 21. One liter of E5 RON92 is VND31,300 per liter, while RON 95-III is VND32,870 per liter.

Gia Hung

MORE NEWS

Schools launch digital-related majors to meet students’ needs

In 2023, many universities have launched new subjects associated with the digital era to meet students’ needs.

Southeast region prepares for new FDI wave

The southeast region is preparing conditions in infrastructure, administrative procedures and human resources to welcome a new wave of foreign direct investment (FDI), as investors have flocked to the region from the beginning of this year.

VIETNAM NEWS HEADLINES FEBRUARY 2/2023

PM chairs monthly teleconference with localities

Experts call for stricter penalties as drink driving soars over Tet

The maximum punishment for car drivers with alcohol concentration levels exceeding 0.4mg per litre of breath, or 80mg in 100 ml of blood, is a fine of VND40 million (US$1,693) and a two-year suspension of their driving licences.

Over 32% of apparel firms remain closed in Hanoi

Nearly a third of textile and garment firms have yet to reopen in Hanoi although the Lunar New Year holiday has ended.

Domestic tourism hits five-year high

Domestic tourism numbers hit 13 million in January, the highest in the last five years, according to the Vietnam National Administration of Tourism.

VIETNAM BUSINESS NEWS FEBRUARY 2/2023

Businesses exporting medicinal herbs to China required to register

Cashless payments on the rise: convenience and security for expats in Vietnam

As digital payment methods surge in popularity, expats in Vietnam are not alone in embracing the change to cashless transactions.

My Dinh Stadium needs money for more upgrading

Having been upgraded with a package worth VND408 billion, My Dinh Stadium is still in poor condition.

Vietnam needs more submarine cables to ensure internet services

Vietnam will need at least two or three more submarine cables to ensure proper internet services for the country's development in the next five years, according to Vu The Binh, Secretary-General of the Vietnam Internet Association.

Government convenes January meeting

The Government convened its first regular monthly meeting for 2023 in Ha Noi on Thursday under the chair of Prime Minister Pham Minh Chinh.

Scammers steal information, money on first days of Year of the Cat

The first days of the New Year are the time for scammers to increase their activities. The most common tricks are stealing information and money from victims’ accounts.

Over 1.9 million households still struggle with poverty: Ministry

There remained more than 1.97 million poor and near-poor households nationwide based on the multi-dimensional poverty standards, according to a survey conducted by the Ministry of Labour, Invalids and Social Affairs (MoLISA) in 2022.

Economic growth and market upgrade to draw capital

The prospect of economic growth and market upgradation is the driving force to attract cash flow into the stock market.

Solving housing issues for workers a key target for the labour sector: PM

Prime Minister Pham Minh Chinh highlighted creating more jobs, improving labourers' skills and giving priority to solving the housing issues of workers as the key tasks of the labour sector during a meeting in Hanoi on Wednesday.
back_to_top