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.
The National Assembly Standing Committee on March 23 passed the resolution on environmental protection tax rates on petroleum, oil and lubricants, which will take effect from April 1 till December 31, 2022.
As fuel prices have increased sharply, airlines have called for the lifting of ceiling airfares and imposition of fuel surcharges.
The world commodity market is fluctuating strongly, and supply chain disruption has led to concerns about inflation and economic growth.
The Ministry of Industry and Trade (MOIT) and Ministry of Finance (MOF) have raised the ceiling fuel prices for the March 1 review. This is the third consecutive price increase in the Year of the Tiger.
If petrol and DO prices continue to stay high, transport firms may have to reduce services and routes, or stop operation temporarily.