Vietnamese business chamber calls for scrap of special consumption tax on fuels

The Vietnam Chamber of Commerce and Industry (VCCI) has again called on the Ministry of Finance to eliminate the special consumption tax on fuel products in a move aimed at supporting businesses and boosting economic recovery, local newspaper Vietnam News reported on Monday.

The business chamber last September suggested the finance ministry scrap the special consumption tax on fuels amid global uncertainties.

In the latest proposal, the VCCI argued that fuel products are necessity goods and reducing consumption is difficult even when fuel prices becomes costly, meanwhile, the special consumption tax should only be imposed on non-essential goods to reduce consumption, such as cigarettes, alcoholic beverages and luxury cars.

However, the finance and taxation authorities said Vietnam’s fuel tax measures are in line with its efforts to promote green growth, fight climate change and achieve the goal of reducing net emissions to zero by 2050.

Vietnam first imposed consumption tax on fuels in 1999 as a counter-pollution initiative. A liter of retail gasoline is currently subject to a 10-percent special consumption tax, in addition to other taxes and fees including the import tariff, environmental tax, and value-added tax. ■

About Famagusta Gazette 9538 Articles
In addition to our Mediterranean perspective, Famagusta Gazette publish extensive coverage of world news, travel and tourism features, and financial information. Follow us on Twitter @FamagustaG