The revenue from taxes that is meant to discourage the production and consumption of products hazardous to the environment is said to have yet to make up for the losses they cause.
Increases in environmental protection taxes on petroleum from the beginning of next year would weigh heavily on inflation, especially as fuel prices rise worldwide, according to the Vietnam Institute For Economic and Policy Research (VEPR).
Members of the National Assembly’s Standing Committee gave their opinions on a draft resolution regarding environmental protection taxes during their sitting on July 12 as part of the committee’s 25th meeting.
The Ministry of Finance has suggested increasing environmental protection taxes to the maximum level in a draft resolution it is compiling for the National Assembly’s Standing Committee.
The Ministry of Finance has proposed raising environmental protection taxes on oil and petroleum products from the current 3,000 VND to the ceiling level of 4,000 VND per litre beginning July 1, 2018.
The budget revenue of the General Department of Customs (GDC) surpassed 261.1 trillion VND (11.5 billion USD), or 91.6 percent of the 2017 target as of November 28.
The Ministry of Finance (MoF) is going ahead with its plan to increase environmental protection tax on petroleum from the current 1,000-4,000 VND to 3,000-8,000 VND per litre, despite objections from other ministries and the public.
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