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Saturday, February 4, 2023

Four scenarios on environmental protection tax on petrol and oil outlined for 2023

Updated: 14:14’ - 03/12/2022
The Ministry of Finance (MOF) have been proposed environmental protection tax (EPT) rates on petrol, oil and grease that would be applied from the beginning of next year with four scenarios corresponding to the fluctuations of crude oil price in the world.

A filling station of Petrolimex in Hanoi__Photo: Hoang Hieu/VNA

As per the first scenario, if global crude oil price dips below USD 70 per barrel, EPT rates would be VND 4,000 per liter of petrol, VND 3,000 per liter of jet fuel, and VND 2,000 per liter of diesel oil. Such are ceiling rates in the current EPT tariff applicable to petrol, oil and grease.

Under the second scenario, in case global crude oil price stays between USD 70 and under USD 80 per barrel, EPT rates would decrease by 25 percent from the ceiling limit of the current EPT bracket to be VND 3,000 per liter of petrol, VND 2,250 per litter of jet fuel, and VND 1,500 per liter of diesel oil.

Regarding the third scenario in which global crude oil price ranges between USD 80 and USD 100 per barrel, EPT rates would drop to the floor limit of the current EPT bracket, i.e., VND 2,000 per liter of petrol, VND 1,500 per liter of jet fuel, and VND 1,000 per liter of diesel fuel.

As for the last scenario when global crude oil surpasses USD 100 per barrel, EPT rates would be VND 1,000 per liter of petrol or jet fuel and VND 500 per liter of diesel oil.

As estimated by the MOF, state budget collection would not be affected under the first scenario. Meanwhile, if the second, third or fourth scenario becomes reality, state budget revenues would decrease by VND 1.4 trillion, VND 2.8 trillion and VND 4.2 trillion per month as the case may be.- (VLLF)
 

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