People wait at a fuel station to fill up their motorbikes in Hanoi (Photo: VNA) In the first scenario, in which global oil prices dip under 70 USDper barrel, environmental tax is set at a ceiling of 4,000 VND per litre ofgasoline, 3,000 VND per litre of jet fuel and 2,000 VND per litre of diesel. Inthis scenario, state budget collection is said to be unaffected.
In the second scenario, in which global oil prices stay between 70-80USD per barrel, environmental tax is set to decrease by 25% from the ceilinglimit or 3,000 VND per litre of gasoline, 2,250 VND per litre of jet fuel and 1,500VND per litre of diesel. Consequently, state budget collection is said todecrease by 1.4 trillion VND per month.
In the third, in which global oil prices stay between 80-100 USD perbarrel, environmental tax is to be cut by half or 2,000 VND per litre ofgasoline, 1,500 VND per litre of jet fuel and 1,000 VND per litre of diesel.State budget collection is said to decrease by 2.8 trillion VND per month.
Lastly, in which global oil prices reach over 100 USD per barrel,environmental tax is to be set at a floor limit of 1,000 VND per litre ofgasoline, 1,000 VND per litre of jet fuel and 500 VND per litre of diesel. Inthis scenario, state budget collection is said to decrease by 4.2 trillion VNDper month.
In each scenario, the rights and interests of all stakeholdersincluding the government, fuel traders, retailers, industries and businessesare taken into account, according to the ministry.
The ministry stressed the importance of staying prepared andproactive in dealing with the global oil prices, which are predicted tostay volatile at least in the foreseeable future, and the effect ondomestic industries and commercial activities.
Starting next year, the National Assembly (NA) StandingCommittee's decrees on lowering environmental tax on fuel and lubricant to itsfloor limit for 2022 are set to expire, bringing it back to its ceilinglimit from January 1, 2023.
The ministry's proposal is part of an attempt to avoid that, whichmay potentially cause disruption and damage to the economy, as well as thegovernment's efforts to stabilise the macroeconomy and curb inflation.
The ministry proposed the tax take effect immediately onceapproved by the Prime Minister's Office without consultation with the NAStanding Committee, as previously required, to better keep up with the marketand control fuel prices./.
VNA
