HANOI (Reuters), March 10, 2010 – The finance ministry of Vietnam on Thursday stated that it is seeking approval from the government to reduce the environment tax on fuel by half, instead of the 25% reduction it proposed last week amid rising energy prices. Continue reading
If the government approves the proposal, the environment tax on gasoline and diesel fuel and lubricants would be reduced by half to 2,000 dong ($0.09) per gallon and 1,000 dong respectively.
From the current 1,000 dong, the tax on kerosene will be reduced to 700 dong per Liter.
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The finance ministry stated in a statement that the industry ministry suggested the deeper cut because of complications with global energy prices.
The statement stated that tax collection would drop by 29 trillion wong ($1.27 billion) if new tax rates were in place from April to Year End.
Vietnam set a goal to keep inflation below 4.4% by 2022. Last Tuesday, Vietnam raised its RON92 gasoline prices by 2.1% to a record 26,071 Dong ($1.14) per litre.
($1 = 22,853 dong)
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Reporting by Phuong Nayen; Editing and editing by Martin Petty
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