Finance ministry mulls further cut in fuel environment tax

The tax, currently at VND2,000 (9 U.S. cents) on gasoline and VND1,000 on other fuels, could be brought down to VND1,000 and VND300, it informed relevant agencies as it sought feedback from them.

The cut could take effect by early August if approved this month and would cost the government’s coffers VND7 trillion ($301.3 million) this year, it added.

The tax was earlier halved from VND4,000 in April.

At the recent session of the National Assembly, lawmakers also called for cutting special consumption tax, value-added tax and import tax on gasoline, whose price reached a new peak of VND32,370 a liter last Monday.

“The Ministry of Finance will evaluate the impact to request the government and National Assembly for further tax cuts,” finance minister Ho Duc Phoc said.

Vuong Dinh Hue, chairman of the National Assembly, said consumers are eagerly awaiting measures to reduce fuel prices.

Cutting profits could also be considered to bring prices down, he added.