Despite freight rates having been adjusted, it remains difficult to cope with escalating gasoline prices. To remove difficulties facing businesses and to implement solutions to stabilize prices and control inflation, the Directorate for Roads has proposed cutting VAT rates for transportation services as well as corporate income tax rates.
In the tax structure for calculating gasoline prices, the Ministry of Finance (MoF) has proposed reducing rates on four types of taxes, including most favored nation (MFN), environmental protection, excise, and VAT. Although the reductions to excise taxes and VAT have not been announced, these are expected to stop the record increase in gasoline prices.
Contributing to a draft resolution on environmental protection tax rates for gasoline, oil, and grease from the Ministry of Finance, the Vietnam Chamber of Commerce and Industry (VCCI) has proposed the Ministry continue to study and evaluate the impact of an abolition of excise taxes on gasoline and to report in writing to the National Assembly. At the same time, the Ministry should carefully consider a plan to cut import taxes on gasoline.
