Under the resolution, the tax rate for gasoline will be cut by VND2,000 (US$0.087) per litter; and the rates for diesel, fuel oil, and lubricant will drop by VND1,000 per liter, grease by VND1,000 per kg, and kerosene by VND700 per liter.
The tax on jet fuel, which had been lowered by VND1,500 per liter earlier, remains unchanged.
The environmental protection tax rates on petroleum, oil and lubricants will be implemented in conformity with Resolution No. 579/2018/UBTVQH14 of the NA Standing Committee from January 1, 2023.
Earlier, Minister of Finance Ho Duc Phoc stressed that it is crucial to issue the resolution, explaining that surging oil and gas prices will put pressure on production, business and consumption.
Nguyen Phu Cuong, Chairman of the NA Finance-Budget Committee, said most of his committee’s members shared the view that the reduction is to quickly stabilize the petroleum market amid the supply crunch, contributing to socio-economic recovery and development post Covid-19, and ensuring harmonious interests of people, businesses and the State.
Some suggested the Government intensify management and inspection over the operations of oil and gas retailers, he added.
Meanwhile, Chairman of the NA Economic Committee Vu Hong Thanh suggested using other tools like export-import tariffs and special consumption tax for the long term.
In his remarks, NA Chairman Vuong Dinh Hue lauded the Finance Ministry’s proposal on the reduction to support people and businesses in the face of the rising global oil prices.
Vice NA Chairman Nguyen Duc Hai suggested the Government consolidate regulations on oil and gas price management, review and adjust relevant fees and taxes, raise the national reserve capacity and use the petrol price stabilization fund reasonably.