Vietnam’s Ministry of Finance has proposed extending a cut to Vietnam’s Environmental Protection Tax that has been in place since April of 2022, VN Express is reporting. The move would see cuts to the tax of 50 percent for petrol, 70 percent for jet fuel, and 40 percent on kerosene extended to the end of December 2025.
The Ministry has suggested that the cut that is currently in place has assisted in managing inflation and would continue to do so if extended.
There is no mention of how this might impact consumption and subsequently the environment the tax was originally implemented to protect.
Of note, Vietnam was ranked 180 out of 180 countries in Yale University’s Environmental Performance Index 2024 back in August. Vietnam scored 24.5 points out of 100 with Estonia taking out first place with a score of 75.3.
See also: Tax in Vietnam 2024: Quick Read