Log in
Business

Vietnamese Gov’t cuts taxes, fees worth US$9.4 billion in 2022

The cut is necessary to help citizens weather inflation and support socioeconomic recovery.

The Vietnamese Government has cut and waived taxes and fees worth over VND233 trillion (US$9.4 billion) in 2022.

 A petrol station at Nguyen Xien Street, Hoang Mai District. Photo: Pham Hung

Minister of Finance Ho Duc Phuoc revealed the figures in a report submitted to the National Assembly on the Government’s support for businesses and people affected by the Covid-19 pandemic.

According to Phoc, the Government is revising tax policies on petroleum products amid rising prices in the domestic and international markets, a move seen as a key solution to contain inflation and support socio-economic development.

“Further support for the people and businesses would contribute to macro-economic stability and resilience against external shocks,” stated Phoc.

Currently, the Government has decided to cut 50% of the environmental protection tax on jet fuels from January 1, 2022, to July 10, 2022, down from VND3,000 per liter to VND1,500.

A further reduction of 70% in the environmental protection tax on kerosene and 50% on petroleum products has also been applied over the same period.

The Ministry of Finance (MoF) estimated the State budget would forego nearly VND33.5 trillion ($1.34 billion) from the cut in environmental protection tax.

Meanwhile, to diversify the source of gasoline imports and better align with Vietnam's commitments in existing free trade agreements (FTAs), the MoF proposed a lower preferential import duty on fuels, from 20% to 10%.

On July 7, the Standing Committee of the National Assembly released a statement calling on the Government to consider adjusting value-added and excise taxes on petrol products. The Committee expressed its concern that a sharp rise in oil prices would cause economic instability and affect people's lives.

Following the move, the Government has suggested a maximum of 50% cut in excise and value-added taxes in case petrol prices continue to rise and could impact the economic performance.

“The MoF would continue to work with other Government agencies to provide supporting measures for socially vulnerable groups or people of low income when prices of basic commodities keep rising,” stated the minister.

In recent months, shortages of gasoline supplies led to the temporary closure of more than 100 gas stations in the southern region, including major cities and provinces such as Ho Chi Minh City, Binh Phuoc, An Giang, and Dak Lak.

Meanwhile, a report from the Hanoi Market Surveillance Authority stated that the fuel supply in Hanoi remains sufficient as the city's 492 gas stations are operating normally.

Reactions:
Share:
Trending
Most Viewed
Related news
Vietnamese firms seek to export to South Korea

Vietnamese firms seek to export to South Korea

The goal of Vietnamese businesses aims to seek buyers and connect with strategic partners at the fair.

No eco-industrial parks certified in Vietnam

No eco-industrial parks certified in Vietnam

High costs, technological limitations, and a lack of regulatory policies prevent industrial parks from going green.

iTech Expo 2025 opens in Ho Chi Minh City

iTech Expo 2025 opens in Ho Chi Minh City

The event fosters networking and innovation amid global market shifts.

Hanoi decides on US$17 million aid package for local farmers

Hanoi decides on US$17 million aid package for local farmers

The financial package will support Hanoi's farmers and producers in the face of natural disasters and diseases.

Vietnam poised to become top investor in Laos

Vietnam poised to become top investor in Laos

Bilateral trade is expected to hit US$5 billion as the two countries strengthen economic ties and streamline cross-border investment procedures.

Vietnam pushes for market economy recognition by the US

Vietnam pushes for market economy recognition by the US

Such a move would help facilitate bilateral cooperation in high-tech sectors, energy, mining, and strategic industries.

Vietnam promotes international cooperation in energy transition

Vietnam promotes international cooperation in energy transition

The partners committed to working closely with the Vietnamese government to ensure that projects are matched with suitable funding sources.

ShopeeFood, GrabFood hold sway in Vietnam’s food delivery market 

ShopeeFood, GrabFood hold sway in Vietnam’s food delivery market 

The survey results highlight evolving consumer preferences, increasing platform specialization, and the expanding role of technology in dining behaviors.