Proposal to exempt fuel taxes until the end of the year.

According to VnExpress , the above proposal was put forward by Associate Professor Dr. Tran Hoang Ngan at the recent National Assembly discussion on the draft Resolution related to environmental protection tax, value-added tax (VAT), and special consumption tax on gasoline and aviation fuel.

Specifically, the government is currently proposing to reduce the environmental protection tax on items such as gasoline (excluding ethanol), diesel fuel, kerosene, fuel oil, and aviation fuel to 0 VND.

At the same time, gasoline, diesel, and aviation fuel will not be subject to VAT declaration and payment but will still be deductible as input tax; the special consumption tax on gasoline is also proposed to be reduced to 0%.

While agreeing with the general policy, Mr. Ngan suggested that the resolution should be extended until the end of the year or at least until September 30th.

According to him, although the draft stipulates that the Prime Minister has the power to adjust the effective date, this approach has not created psychological stability for businesses and the public. He also emphasized that even if world oil prices fall in the near future, there should be no rush to adjust the tax upwards again, in order to continue supporting those affected by rising fuel costs.

Conversely, Mr. Nguyen Minh Son argued that the tax reduction would significantly impact the state budget. According to calculations, the budget could see a revenue decrease of approximately 7,300 billion VND per month, equivalent to 18,250 billion VND over the 2.5 months of implementation.

If we add the approximately 8 trillion VND advanced from the fuel price stabilization fund, the total impact could reach 26.25 trillion VND. This could put pressure on development investment spending, social welfare, as well as increase public debt and affect long-term growth.

Therefore, Mr. Son supports the option of giving the Government the flexibility to decide on the implementation time depending on the actual situation.

The National Assembly is expected to vote on this resolution on the morning of April 12th.

News summary.