Under the proposal, Government suggested environmental protection tax should be cut by:

- VND 2,000 (US$ 0.088) per liter of gasoline;

- VND 1,000 VND per liter of diesel, fuel oil, and lubricating oil;

- VND 1,000 per kg of grease;

- VND 700 per liter of kerosene.

The proposed policy should be applicable from April 1 to December 31, 2022, the Government proposed.

If approved by the NASC, the policy will lead to reduction of over VND 29 trillion (US$1.26 million) in tax revenue, the Government estimated.

Last week, retail petrol price hit all-time high of nearly VND 30,000 per litter sparked by global oil market fluctuations.

The reduction of environmental protection tax on gasoline, oil and grease will contribute to reducing selling prices, thereby limiting the increase in production costs, reducing production costs, and stabilizing inflation.

In addition to the environmental tax, gasoline and oil are also subject to value-added tax, import tax, and excise tax.

In January this year, the Government decided to lower value-added tax on services and goods provided by firms excluding those in the fields of telecommunications, banking and finance, property development, mining and metallurgy, refinery and petrochemicals, chemical products./.