Minister of Finance Ho Duc Phoc speaks at the working session. (Photo: VNA)

Under the resolution, the tax rate for gasoline will be cut by 2,000 VND (0.087 USD) per litre; and the rates for diesel, fuel oil, and lubricant will drop by 1,000 VND per litre, grease by 1,000 VND per kg, and kerosene by 700 VND per litre.

The tax on jet fuel, which had been lowered by 1,500 VND per litre earlier, remains unchanged.

The environmental protection tax rates on petroleum, oil and lubricants will be implemented in conformity with Resolution No. 579/2018/UBTVQH14 of the NA Standing Committee from January 1, 2023.

Earlier, Minister of Finance Ho Duc Phoc stressed that it is crucial to issue the resolution, explaining that surging oil and gas prices will put pressure on production, business and consumption.

Nguyen Phu Cuong, Chairman of the NA Finance-Budget Committee, said most of his committee’s members shared the view that the reduction is to quickly stabilise the petroleum market amid the supply crunch, contributing to socio-economic recovery and development post COVID-19, and ensuring harmonious interests of people, businesses and the State.

Some suggested the Government intensify management and inspection of the operations of oil and gas retailers, he added.

Meanwhile, Chairman of the NA Economic Committee Vu Hong Thanh suggested using other tools like export-import tariffs and special consumption tax for the long term.

In his remarks, NA Chairman Vuong Dinh Hue lauded the Finance Ministry’s proposal for the reduction to support people and businesses in the face of rising global oil prices.

Vice NA Chairman Nguyen Duc Hai suggested the Government consolidate regulations on oil and gas price management, review and adjust relevant fees and taxes, raise the national reserve capacity and use the petrol price stabilisation fund reasonably.