Image: Reuters Berita 24 English - As rising energy prices put pressure on inflation, the national parliament of Vietnam adopted a measure o...
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| Image: Reuters |
Berita 24 English - As rising energy prices put pressure on inflation, the national parliament of Vietnam adopted a measure on Wednesday to slash the environment tax on fuel by half for the second time in three months.
According to Vietnam Television (VTV), the extended cut, which will be in effect from July 11 until the end of the year, is intended to help Vietnam withstand the economic effects of rising transportation expenses.
For 2022, Vietnam wants to keep inflation at or below 4%. Its consumer prices increased 3.37 percent from a year earlier in June, driven primarily by increasing food and energy prices, while transportation expenses increased 21.4 percent.
The environment tax on both diesel and gasoline would be cut in half, to 1,000 dong ($0.0428) and 500 dong per litre, respectively.
While the tax on kerosene would remain at 300 dong per litre, the tax on jet fuel would be decreased by 500 dong to the floor price of 1,000 dong.
According to the finance ministry, the higher rates would result in a 32.5 trillion dong ($1.39 billion) decrease in tax revenue.
The Southeast Asian nation announced last week that it will reduce the special consumption tax and value-added tax on fuels, as well as lower its Most Favoured Nation tariff on gasoline from 20 to 12 percent.
($1 = 23,368 dong)
