Environmental protection tax on jet fuel to be cut by half in 2022

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Environmental protection tax on jet fuel will be cut by half in 2022. — VNA/VNS Photo

HÀ NỘI — All National Assembly (NA) deputies on Friday agreed to reduce the environmental protection tax on jet fuel by half starting from today as the aviation sector has been severely hit by COVID-19.

The legislators voted on the resolution during the meeting of NA Standing Committee on Friday.

The tax will be set at VNĐ1,500 per litre from January 1, 2022 to December 31, 2022 and increase to VNĐ3,000 from January 1, 2023.

This aims to increase State support levels for aviation enterprises seriously affected by the pandemic.

NA deputies agreed that the domestic aviation sector will be able to recover step by step in 2022 in spite of the challenges and unexpected development of the pandemic. The international aviation market will need a longer time to recover.

From July 2020 until the end of 2021, the environmental protection tax on jet fuel has been cut down by 30 per cent.

Finance minister Hồ Đức Phớc said cutting the tax by half was a proper solution in relevance with the State policies of supporting COVID-affected businesses, contributing to the post-pandemic socio-economic recovery and development.

The reduction will also contribute to encouraging the growth of other spearhead economic sectors such as trade, tourism, and services.

The same day, legislators gave feedback for the second time on fiscal and monetary policies for the implementation of the socio-economic recovery and development programme.

At the opening session of the 6th NA Standing Committee session earlier last month, NA Chairman Vương Đình Huệ said that the project on building mechanisms, fiscal and monetary policies to support the implementation of the socio-economic recovery and development would be discussed at the first extraordinary session of the 15th NA in January

He said these mechanisms and policies were separate and not part of five-year plans approved by the NA such as socio-economic development plan, medium-term State budget financial plan, public investment plan.

During a press conference on Thursday on the first extraordinary session of the 15th NA, which is to open on January 4 and close on January 11, NA Secretary General and Chairman of the NA Office Bùi Văn Cường said if the fiscal and monetary policy package is adopted in early 2022, economic growth will be bolstered during 2022-23 and the entire tenure. However, if it is left to be approved by the NA at the May session.

He affirmed that the matters to be considered at the extraordinary session were both necessary and urgent in the service of national socio-economic development. — VNS

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