People wait at a fuel station to fill up their motorbikes in Hanoi (Photo: VNA) In the first scenario, in which global oil prices dip under 70 USD per barrel, environmental tax is set at a ceiling of 4,000 VND per litre of gasoline, 3,000 VND per litre of jet fuel and 2,000 VND per litre of diesel. In this scenario, state budget collection is said to be unaffected.
In the second scenario, in which global oil prices stay between 70-80 USD per barrel, environmental tax is set to decrease by 25% from the ceiling limit or 3,000 VND per litre of gasoline, 2,250 VND per litre of jet fuel and 1,500 VND per litre of diesel. Consequently, state budget collection is said to decrease by 1.4 trillion VND per month.
In the third, in which global oil prices stay between 80-100 USD per barrel, environmental tax is to be cut by half or 2,000 VND per litre of gasoline, 1,500 VND per litre of jet fuel and 1,000 VND per litre of diesel. State budget collection is said to decrease by 2.8 trillion VND per month.
Lastly, in which global oil prices reach over 100 USD per barrel, environmental tax is to be set at a floor limit of 1,000 VND per litre of gasoline, 1,000 VND per litre of jet fuel and 500 VND per litre of diesel. In this scenario, state budget collection is said to decrease by 4.2 trillion VND per month.
In each scenario, the rights and interests of all stakeholders including the government, fuel traders, retailers, industries and businesses are taken into account, according to the ministry.
The ministry stressed the importance of staying prepared and proactive in dealing with the global oil prices, which are predicted to stay volatile at least in the foreseeable future, and the effect on domestic industries and commercial activities.
Starting next year, the National Assembly (NA) Standing Committee's decrees on lowering environmental tax on fuel and lubricant to its floor limit for 2022 are set to expire, bringing it back to its ceiling limit from January 1, 2023.
The ministry's proposal is part of an attempt to avoid that, which may potentially cause disruption and damage to the economy, as well as the government's efforts to stabilise the macroeconomy and curb inflation.
The ministry proposed the tax take effect immediately once approved by the Prime Minister's Office without consultation with the NA Standing Committee, as previously required, to better keep up with the market and control fuel prices./.
VNA
