In its comments to the Ministry of Finance, the Vietnam Federation of Commerce and Industry (VCCI) said that gasoline is not a luxury item, so imposing special consumption tax on this item is also to protect the environment. Therefore, they suggested that the drafting agency consider removing this tax on domestic fuel.

Similarly, the Ministry of Agriculture and Rural Development believes that the consumption of bio-fuel (E5 and E10) has not yet replaced mineral gasoline due to consumer habits and the advantages of this fuel, so replacing mineral gasoline needs a roadmap.

Therefore, the Ministry of Agriculture and Rural Development proposed to consider reducing the Special Consumption Tax on mineral gasoline but could consider increasing the environmental protection tax rate to match the tax target.

However, In the draft amendment to the Law on Special Consumption Tax (amended) sent by the Ministry of Finance to the Ministry of Justice for appraisal, the Ministry of Finance explained that the adjustment of Special Consumption Tax rates is under the authority of the National Assembly, so it must be submitted to the National Assembly for consideration and decision.

The Ministry also stated that gasoline is a fossil fuel, non-renewable, and needs to be used sparingly, so most countries collect special consumption tax on this item, such as France, Germany, Italy, England, South Korea, Australia, Thailand, Singapore, China, Cambodia, Laos, etc.

In Vietnam, gasoline has been subject to Special Consumption Tax since 1995.

"This regulation is consistent with the objectives of the Special Consumption Tax and in line with international practices. In addition, in the context of environmental pollution and climate change being global issues, the Vietnamese Government's commitment to achieving net zero emissions by 2050, along with other solutions, the current collection of Special Consumption Tax on gasoline is appropriate, contributing to reducing emissions," the Ministry of Finance explained.

Previously, speaking with Lao Dong, experts also did not support removing the Special Consumption Tax on gasoline.

Speaking with Lao Dong, Dr. Nguyen Minh Phong - former Head of Economic Research Department, Hanoi Institute for Socio-Economic Development Studies said that it is necessary to carefully consider the proposal to remove the Special Consumption Tax on gasoline, because the nature of the Special Consumption Tax is to orient consumption, contributing to limiting the use of non-renewable fuels.

"If the Special Consumption Tax on gasoline is removed, gasoline prices may decrease somewhat, but it will not have an overall impact on gasoline prices, because gasoline prices are now linked to the world and are affected by the world market. If the Special Consumption Tax on gasoline is removed, people will use gasoline indiscriminately, causing environmental pollution, and budget revenue will also decrease.

Therefore, I think it is necessary to carefully consider and evaluate the two-sided impact. Basically, I think it should not be abandoned in the current context," said Dr. Nguyen Minh Phong.