Further cut on environmental protection tax on jet fuel approved

The environmental protection tax on jet fuel will be down further to 1,500 VND per litre, starting from January 1, 2022, according to a resolution adopted by the National Assembly’s Standing Committee during its sixth sitting on December 31.

The environmental protection tax on jet fuel will be down further to 1,500 VND (0.066 USD) per litre, starting from January 1, 2022, according to a new resolution by the National Assembly’s Standing Committee. (Photo: VNA)

Hanoi (VNA) – The environmental protection tax on jet fuel will be down further to 1,500 VND (0.066 USD) per litre, starting from January 1, 2022, according to a resolution adopted by the National Assembly’s Standing Committee during its sixth sitting on December 31.

Under the new resolution, the new tax rate will be half of that outlined in Resolution No.579 issued by the NA Standing Committee in 2018 on environment protection taxes. The reduced tax rate will be applicable until December 31, 2022 and will be back to the normal rate of 3,000 VND per litre from January 1, 2023.

The move aims to provide extra help to the COVID-19-stricken aviation industry. The sector is forecast to go through another tough year because of lingering impacts of the pandemic, slowing down the recovery of the aviation market domestically and internationally.

The National Assembly’s Standing Committee convenes the sixth sitting on December 31. (Photo: VNA)

Last year, the NA Standing Committee approved to slash the environmental protection tax on jet fuel by 30 percent, applicable from July 2020 to the end of this year.

A further cut of 50 percent to the tax stays in line with the Party and State’s policies on providing aid for pandemic-hit enterprises to help them overcome difficulties and boost post-COVID-19 socio-economic development and recovery, said Minister of Finance Ho Duc Phoc.

It would also pave the way for reviving other major sectors, such as trade, tourism, and services, he added./.

VNA