The Ministry of Finance has proposed to continue 50% reduction in environmental tax on gasoline (excluding ethanol), oil, and lubricants until the end of 2025 to spur economic growth, according to the Government News.

The proposal will be submitted to the National Assembly for consideration and approval.

The move is the continuation of already-in-effect tax cut policy, which imposes a tax rate of VND2,000 ($0.07) per liter for gasoline, VND600 for kerosene, and VND1,000 for diesel, fuel oil, lubricant, and aeroplane fuel.

The current policy shall expire on December 31, 2024. The tax rates will then go back to the previous level at VND4,000 per liter for gasoline, VND1,000 for kerosene, VND2,000 for diesel, fuel oil, lubricant, and VND3,000 for aeroplane fuel.

If approved by the National Assembly, the new proposal shall take effect from January 1 to December 31, 2025. The State budget will likely see a drop in environmental tax of VND44,222 billion (nearly $1.75 billion)