Vietnam finance ministry seeks deeper cut in environment tax on fuel – Reuters.com

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HANOI, March 10 (Reuters) – Vietnam’s finance ministry on Thursday said it was seeking government approval to lower environment tax on fuel by half instead of the 25% cut it proposed last week, amid soaring energy prices. read more

Accordingly, environment tax on gasoline, and on diesel fuel and lubricants would be cut by half to 2,000 dong ($0.09) per litre and 1,000 dong per litre respectively if the government passes the proposal.

Tax on kerosene would be reduced to 700 dong per litre from the current 1,000 dong.

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The deeper proposed cut was based on complications with global energy prices and was suggested by the industry ministry, the finance ministry said in a statement.

Tax collection would be reduced by 29 trillion dong ($1.27 billion) if the new tax rates are in place from April to year end, the statement added.

Vietnam aimed to keep inflation below 4% for 2022. The country raised its RON92 gasoline price by 2.1% to a record high 26,071 dong ($1.14) per litre last Tuesday.

($1 = 22,853 dong)

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Reporting by Phuong Nguyen; Editing by Martin Petty

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