- AFP
HANOI: Vietnam plans to impose a special consumption tax on petrol, or gasoline, as part of its strategy to fulfil environmental commitments, Finance Minister Nguyen Van Thang said at the National Assembly session on May 9 that focused on the amended draft Law on Special Consumption Tax.
Environmental pollution is on the rise, and without imposing a tax on petrol, it will be difficult to change consumer behavior, the minister said. A special consumption tax on petrol has been in place since 1998.
He emphasised that transitioning to environmentally friendly alternatives, such as electric vehicles and public transportation, requires comprehensive policies, including fuel taxation.
Vietnam’s commitment to achieving net-zero emissions by 2050, as pledged by the prime minister at COP26, underpins this move.
While acknowledging the country’s economic challenges, minister Thang said Vietnam must align with international practices, noting that many developed nations impose various fuel-related levies such as carbon dioxide taxes and fees.
According to the minister, while environmental protection fees help fund environment-related projects, the special consumption tax primarily aims to influence consumer behaviour and raise budget revenue.
“Implementing both taxes complements each other and aligns with Vietnam’s climate goals,” he said.
He added that Vietnam’s fuel tax rates remained lower than those in many other countries.
National Assembly deputy Ha Sy Dong agreed with the view that petrol should be taxed, but emphasised that at present, it is the only product subject to both a special consumption tax and an environmental protection tax.
In contrast, oil – a similar fuel used for vehicles – is currently only subject to the environmental protection tax.
“If the goal of taxing petrol is to mitigate environmental harm, then only the environmental protection tax should be applied. Therefore, I propose removing the special consumption tax on petrol,” he stated.
National Assembly deputy Nguyen Truong Giang also supported this view, suggesting that the special consumption tax on petrol be removed and the environmental protection tax increased if necessary.
Notably, deputy Nguyen Minh Tam proposed adding plastic bags to the list of goods subject to special consumption tax, in order to support environmental protection goals and reduce the use of single-use plastic products.
According to several deputies, despite the government’s efforts and strong public awareness campaigns, the public’s habit of using plastic bags has shown little change or decline. — Viet Nam News/ANN
