ENVIRONMENTAL PROTECTION TAX REDUCTION FOR PETROL, OIL, LUBRICINE

The National Assembly (NA) 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.

In which: 50% reduction of environmental protection tax rate for petroleum (except ethanol), diesel oil, mazut oil, lubricant, grease from April 1, 2022 to the end of December 31, 2022; 70% reduction of environmental protection tax rate for kerosene from April 1, 2022 to the end of December 31, 2022. Particularly, the environmental protection tax rate for flying fuel remains the same as prescribed in the Resolution No.13/2021/UBTVQH15.

Thus, after decreasing, the environmental protection tax rate with petroleum is as follows:

No.	Product	Unit	Tax  (VND/commodity unit)
1	Petroleum (except ethanol)	liter	2.000
2	Diesel oil	liter	1.000
3	Kerosene	liter	300
4	Mazut oil	liter	1.000
5	Lubricant	liter	1.000
6	Grease	kg	1.000

The current petroleum price structure is subject to 04 taxes: value-added, import tax, special consumption tax and environmental protection tax. Specifically:

1. Environmental protection tax

Like the above board.

2. Value-added tax

The increase in the value-added tax rate for petroleum and oil is 10% on the selling price under Clause 3, Article 8 of the 2008 Law on Value-added Tax.

3. Import tax

Pursuant to Decree No. 122/2016/ND-CP, the preferential import tax schedule with petrol items is 20%, the oils and flying fuels are 7%.

4. Special consumption tax

Pursuant to Clause 4, Article 1 of the Law on Special consumption tax amended, the special consumption tax rate applied to gasoline is 10%, E5 gasoline is 8% and E10 gasoline is 7%.