Will propose to reduce tax on gasoline
During the questioning session this morning (June 8), delegate Nguyen Viet Nga (delegation from Hai Duong) asked the Minister of Finance’s views on tax reduction solutions to lower gasoline prices to support people and businesses. Karma?
According to Mr. Phuc, the price of gasoline in the country is currently increasing. However, compared to countries around Vietnam like Laos, the price is still higher than ours by about 10,000 – 11,000 VND/liter. Or the price in Thailand, Cambodia is also higher about 2,000 – 3,000 VND / liter.
Regarding tax reduction solutions to reduce domestic gasoline prices, Mr. Phuc said this issue falls under the jurisdiction of the National Assembly Standing Committee and the National Assembly.
As with the initial petroleum environmental tax of 4,000 VND/liter, according to Minister Phuc, the ministry proposed and was approved by the National Assembly Standing Committee to reduce the environmental tax by 2,000 VND/liter. This tax reduction, in general, reduces the loss of about 24,000 billion VND in budget revenue.
The remaining 2,000 VND/liter of petrol and oil environmental tax, according to the provisions of the Law, the National Assembly Standing Committee can only decide to reduce another 1,000 VND/liter. To reduce all 2,000 VND/liter of environmental tax in petrol, it falls under the competence of the National Assembly.
With the import tax, according to the NAFTA roadmap, it will be reduced from 8 to 8.8%, currently the import tax is 8%. As for the 10% excise tax and 10% VAT, according to the Minister of Finance, whether or not the tax will be reduced is within the competence of the National Assembly.
“In the immediate future, we will assess the impact and report to the Government to submit to the National Assembly Standing Committee, the National Assembly can reduce taxes, to reduce the price of gasoline,” Mr. Phuc informed.
Minister of Finance Ho Duc Phuc answered questions before the National Assembly this morning (June 8).
However, Mr. Phuc affirmed that solutions must be implemented synchronously, because if only reducing taxes to reduce prices but still allowing smuggling to occur, the cash flow will inadvertently flow abroad. In addition, the price depends not only on the tax issue, but also on the supply-demand relationship.
“Where do we buy gasoline for good and cheap? Buy in Singapore, Korea or Malaysia? Do we have to find a supply? We will discuss this with the Ministry of Industry and Trade,” said the Finance Minister.
In addition, Mr. Phuc said that domestic production must be boosted to increase supply. Annual domestic demand for petroleum is 21 million tons/year, domestic production is about 11 million tons. Currently, Binh Son factory has reached 100% capacity, while Nghi Son’s output is low, so it is necessary to take measures to increase capacity.
Responsibilities need to be clearly defined
Commenting on the answer to the question of Minister Ho Duc Phuc, National Assembly Chairman Vuong Dinh Hue said that Minister of Finance Ho Duc Phuc should review the authority of taxes and fees. Which is the responsibility of the National Assembly, which belongs to the National Assembly Standing Committee, which belongs to the Government?
“Like the import and export tariff, in the base price formula, whose responsibility is it? Not all taxes fall under the jurisdiction of the National Assembly Standing Committee and the National Assembly,” the National Assembly Chairman emphasized.
National Assembly Chairman Vuong Dinh Hue emphasized that prices operate according to market principles but are managed by the State
In addition to tax tools, the National Assembly Chairman also requested a comprehensive study of tools and solutions to support gasoline prices related to subjects such as: fishermen fishing far from shore, the poor , low income people….
“Prices operate on market principles but are managed by the State,” emphasized the National Assembly Chairman.
Should not interfere too deeply?
Debating with Finance Minister Ho Duc Phuc on the issue of gasoline prices, delegate Nguyen Van Than (Thai Binh delegation, Chairman of the Vietnam Association of Small and Medium Enterprises) argued with the Minister of Finance about the price issue. petroleum after listening to the Minister’s answer to the National Assembly deputies’ question on this issue.
According to Mr. Than, Vietnam is a socialist-oriented market economy. Therefore, if I intervene too deeply, I think it will not operate according to the market mechanism. Let the price of petrol increase and decrease according to the world price, according to the market mechanism.
“In the economy, we have both domestic enterprises and foreign invested enterprises. If we reduce taxes to reduce gasoline prices, it will affect exports. Therefore, the intervention needs to be appropriate, not too deep, “said Mr. Than.
Debating this issue, the Finance Minister stated that the reduction in petrol prices would bring many benefits to the economy. Such as contributing to reducing costs of enterprises, reducing production costs, promoting growth, promoting competition and creating jobs for workers. Thereby increasing savings for the economy.
“As economic accumulation increases, we can collect taxes through increasing the added value of the economy. Therefore, reducing taxes to reduce gasoline prices is a solution, but how much to reduce it needs to be carefully calculated,” the Minister said.
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