Fuel and tobacco are among eight products that will be taxed under the Environmental Tax Law planned to take effect on January 1, 2012.
Other products are hydrochloroflorocarbons (HCFC), often used in fridges and air conditioners; plastic granules and powder made from petrochemical products, plastic membranes and imported plastic waste; batteries and accumulators; cleansing chemicals; inorganic acids and sodium hydroxide; and industrial paints.
Under the draft law, which is prepared by the Ministry of Finance, tobacco would be imposed the highest environmental tax rate of VND 50-500 per gram or VND 50,000-500,000 per kilogram.
Fuel would be taxed at VND 1,000-6,000 per liter. Specifically, petrol and jet fuel would be subject to a tax rate of up to VND 6,000 per liter. Diesel oil would be taxed at VND 500-2,000 per liter. Meanwhile, the tax bracket of VND 300-2,000 per liter or per kilogram would be applied to kerosene, fuel oil, lubricants and grease.
Coal would be taxed at VND 6-30 per kilogram, which is the lowest tax rate proposed in the draft law.
According to the draft law, environmental taxes will be levied when the products are sold in the market, if they are locally produced, or included in import duties for those that are imported. Taxes on fuel will be levied at places they are sold to retailers.-