Vietnam finance ministry seeks deeper cut in environment tax on fuel

Customers refill the petrol tanks of their vehicles with gasoline at a gas station in Hanoi. - AFP

HANOI, March 11 (Reuters): Vietnam's finance ministry has announced that it was seeking government approval to lower environment tax on fuel by half instead of the 25% cut it proposed last week, amid soaring energy prices.

Accordingly, environment tax on gasoline, and on diesel fuel and lubricants would be cut by half to 2,000 dong ($0.09) per litre and 1,000 dong per litre respectively if the government passes the proposal.

Tax on kerosene would be reduced to 700 dong per litre from the current 1,000 dong.

The deeper proposed cut was based on complications with global energy prices and was suggested by the industry ministry, the finance ministry said in a statement.

Tax collection would be reduced by 29 trillion dong ($1.27 billion) if the new tax rates are in place from April to year end, the statement added.

Vietnam aimed to keep inflation below 4% for 2022. The country raised its RON92 gasoline price by 2.1% to a record high 26,071 dong ($1.14) per litre last Tuesday. (US$1 = 22,853 dong). - Reuters