Finance ministry proposes to cut environment tax on gasoline by VND2,000 from April 1

Accordingly, the environment tax on gasoline would be cut by half to VND 2,000/liter; diesel oil, mazut oil, lubricant is VND 1,000/liter and Kerosene is $700 per liter if the government passes the proposal.

At the same time, the Ministry of Finance proposed that the resolution take effect from April 1, 2022 to December 31, 2022.

The deeper proposed cut was based on complications with global energy prices and COVID-19 situation in the country, the finance ministry said in a statement.

Tax collection would be reduced by VND29 trillion ($1.27 billion) per year if the new tax rates are in place from April to year-end, the statement added.

Vietnam aimed to keep inflation below 4 percent for 2022. The country raised its RON92 gasoline price by 2.1 percent to a record high VND26,071($1.14) per liter last Tuesday.

Earlier, the Ministry of Industry and Trade urged to cut 50 percent on gasoline environment tax.