Reduction in environmental taxes on gasoline and oil leads to a significant decrease in state budget revenue.
According to the General Department of Taxation (Ministry of Finance), the policy of reducing environmental protection taxes on gasoline (except for ethanol), diesel oil, mazut, lubricating oil, grease, kerosene, and aviation fuel took effect on January 1, 2024, as per Resolution 42 dated December 18, 2023, issued by the National Assembly Standing Committee.
As of July 22, the implementation of this tax reduction has resulted in an estimated loss of VND 19,792 billion in state budget revenue for the first seven months of 2024.
The reduction in environmental taxes on aviation fuel is estimated to have reduced state budget revenue by approximately VND 1,151 billion. Meanwhile, the tax cut for gasoline, oil, and grease is expected to result in a revenue loss of about VND 18,641 billion.
Additionally, the tax authority reported that the reduction in land rent is estimated to have decreased state budget revenue by VND 2,372 billion for the same seven-month period.
Regarding Value-Added Tax (VAT), the National Assembly’s Resolution No. 110, dated November 29, 2023, resulted in a VAT reduction of VND 87,109 billion based on the database of taxpayers’ VAT declarations with a tax period up to June 21, 2024.
The General Department of Taxation further informed that, as of the end of July, the total amount of taxes and land rent eligible for extension under Decree No. 64/2024/ND-CP on the extension of payment deadlines for VAT, Corporate Income Tax, Personal Income Tax, and land rent in 2024, and Decree No. 65/2024/ND-CP on the extension of payment deadlines for Special Consumption Tax on domestically produced or assembled automobiles, is estimated to be approximately VND 32,100 billion.
