Illustrative image (Source: VNA) Hanoi (VNA) – The Ministry of Financehas suggested increasing environmental protection taxes to the maximum level ina draft resolution it is compiling for the National Assembly’s StandingCommittee, which has caused mixed opinions.
According to the ministry, the move willencourage the thrift and effective use of energy and natural resources, and theproduction and consumption of eco-friendly products, while reducing emissionsand fulfilling Vietnam’s international commitments to environmental protection.
Agreeing with the suggestion, expertsunderscored the need for strong measures to curb environmentally-threateningactivities by both individuals and organisations and raise public awareness ofenvironmental protection and eco-friendly products.
At the same time, the tax also contributesto the State budget. In other countries, environmental protection taxes areestimated to account for around 5 percent of the gross domestic product (GDP)on average.
The ministry estimated that environmentprotection tax collection will hit nearly 57.3 trillion VND (2.51 billion USD) peryear, marking an annual rise of more than 15.68 trillion VND, some 55.6 trillionVND of which was from petrol taxes.
Chairwoman of the Vietnam Tax Consultants’Association Nguyen Thi Cuc said petrol prices in Vietnam are now lower than in neighbouringcountries Laos, Cambodia and China, ranking 45th out of 170globally. Meanwhile, petrol import tariffs have been cut to 10-20 percent from theprevious 40 percent under tax reduction roadmaps, thus affecting Staterevenues.
The tax revision, scheduled to be valid inJuly 1, is forecast to raise the consumer price index (CPI) in July by0.27-0.29 percent compared to June and the yearly CPI by 0.11-0.15 percent,according to calculations of the Finance Ministry.-VNA
According to the ministry, the move willencourage the thrift and effective use of energy and natural resources, and theproduction and consumption of eco-friendly products, while reducing emissionsand fulfilling Vietnam’s international commitments to environmental protection.
Agreeing with the suggestion, expertsunderscored the need for strong measures to curb environmentally-threateningactivities by both individuals and organisations and raise public awareness ofenvironmental protection and eco-friendly products.
At the same time, the tax also contributesto the State budget. In other countries, environmental protection taxes areestimated to account for around 5 percent of the gross domestic product (GDP)on average.
The ministry estimated that environmentprotection tax collection will hit nearly 57.3 trillion VND (2.51 billion USD) peryear, marking an annual rise of more than 15.68 trillion VND, some 55.6 trillionVND of which was from petrol taxes.
Chairwoman of the Vietnam Tax Consultants’Association Nguyen Thi Cuc said petrol prices in Vietnam are now lower than in neighbouringcountries Laos, Cambodia and China, ranking 45th out of 170globally. Meanwhile, petrol import tariffs have been cut to 10-20 percent from theprevious 40 percent under tax reduction roadmaps, thus affecting Staterevenues.
The tax revision, scheduled to be valid inJuly 1, is forecast to raise the consumer price index (CPI) in July by0.27-0.29 percent compared to June and the yearly CPI by 0.11-0.15 percent,according to calculations of the Finance Ministry.-VNA
VNA
