VCN- Facing to the proposal for more preferential environmental protection tax (EPT) rates to promote the use of biofuel, the Ministry of Finance said that each tax has its own adjustable target, so this recommendation is not appropriate.
|Proposing the adjustment of environmental taxes contributes to limiting petrol smuggling|
|What does the Ministry of Finance say about the increase of the environmental tax on oil and gas?|
|Environmental protection tax: appropriate solution for environmental problems|
In the Explanatory Statement on the draft Resolution on EPT, the Ministry of Finance stated that it was recommended that it is required to report to the Government on proposing the National Assembly to stipulate preferential environmental protection tax rates for biofuels in order to encourage the use of this fuel.
According to the Ministry of Finance, in the tax system, each tax has its own adjustable target. Currently, in order to encourage the production and use of biofuel, Law on special consumption tax (SST) stipulates the preferential tax rates for E5 (5% ethanol), E10 (10% ethanol) as follows: SST rate on mineral gasoline is 10%, on E5 biofuel is 8%, E10 biofuel is 7%. Thus, if the mineral gasoline and E5 biofuel have the same taxable price, the price of E5 biofuel is 3% lower than mineral gasoline’s
The current Law on EPT stipulates that the tax is only imposed on fossil fuels (mineral gasoline), not imposed on ethanol. At present, the EPT rate on mineral gasoline is VND 3,000/ liter. Accordingly, the EPT rate on E5 biofuel is VND 150/liter lower than the EPT on mineral gasoline. If the EPT rate on mineral gasoline is VND 4,000 / liter, the EPT rate on E5 biofuel is 200 VND / liter lower than the EPT rate on mineral gasoline (VND 50/ liter lower than the current rate). This will create more disparity between the price of E5 biofuel and mineral gasoline.
The upward revision of EPT rates on petroleum together with other measures (such as the preferential SCT rate on biofuel) will contribute to encouraging the production and use of biofuels, limiting the use of fossil fuels, causing environmental pollution.
|Difficult to reduce Environment Tax for gasoline under Euro 4 standard
VCN- Commenting on the draft Resolution on the Environmental protection tariff, it was proposed that the Environmental ...
Therefore, according to the Ministry of Finance, the proposal to supplement the provision on preferential EPT rates on biofuels into the draft Resolution of the National Assembly Standing Committee on Environmental Protection Tariff me
By Hong Van/ Huyen Trang