Ministry proposes environmental protection tax cut for biofuel

21-May-2019 Intellasia | SGGP News | 6:00 AM Print This Post

The Ministry of Industry and Trade said that it has proposed the prime minister to consider adjusting the environmental protection tax rate for biofuel in general and E5 RON92 ethanol gasoline blend in particular so as to create a basic and large enough difference in price between biofuel and fossil fuel that is able to convince consumers to use biofuel.

Latest data showed that the amount of gasoline E5 RON92 consumed across the nation in the first three months of this year was around 740,000 cubic meters, or 37.8 percent of total amount of gasoline.

Currently, the environmental protection tax rate of gasoline E5 RON92 is VND3,800 per litre, or 95 percent of tax rate of fossil fuel RON92. In order to encourage consumption of gasoline E5 RON92, the ministry said that the government should increase the gap between two types of gasoline by adjusting environmental protection tax rate of E5 RON92 gasoline for environmental purpose.

Earlier, some fuel wholesalers also asked for reduction in environmental protection tax for E5 RON92 gasoline due to its decreasing consumption, especially since the beginning of this year. Therefore, several gas stations have neglected to sell E5 RON92 gasoline. Some even have removed their E5 RON92 gasoline dispensers and shifted to sell fossil gasoline RON95.

On May 17, the ministries of Finance and Industry and Trade cut the price of RON95-III gasoline by VND592 per litre to VND21,599 per litre. The price of E5 RON92 gasoline was down VND200 per litre to VND20,488 per litre. Diesel oil dropped VND81 per litre to VND17,614 per litre. Kerosene slid VND203 per litre to VND16,422 per litre. Fuel oil (FO) fell VND466 per kilogram to VND15,536 per kilogram.

Meanwhile, the setting up level of the fuel price stabilisation fund was VND100 per litre for E5 RON92 and VND300 per litre for RON95 gasoline and other kinds of oil.

Allocations of E5 RON92 gasoline were VND457 per litre and those of RON95 gasoline were VND0 per litre.

http://sggpnews.org.vn/business/ministry-proposes-environmental-protection-tax-cut-for-biofuel-81881.html

 


Category: Economy, Vietnam

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