Vietnam - Vietnam levies environment tax on five product groups

The government will levy an environment tax on five groups of products namely, petroleum, coal, hydro chlorofluorocarbon liquid (HCFC), plastic bags and chemical pesticides.

The government will levy an environment tax on five groups of products namely, petroleum, coal, hydro chlorofluorocarbon liquid (HCFC), plastic bags and chemical pesticides, effective from January 1, 2012, with each product being subject to a separate tax rate.

As petroleum products like gasoline, jet fuel, diesel oil, kerosene and mazut oil are currently subject to fuel surcharge, when the environment tax takes effect, fuel surcharge will be removed, and the environment tax will be levied at the same level as the current fuel surcharge.

A minimum tax of about 6,000-30,000 dong per ton will be imposed on coal retailing, while plastic bags will have to bear a tax of around 20,000-30,000 dong per kilogram.

As price of various chemical pesticides such as those used on farm crops, anti-termite spray, forest produce preservatives, and warehouse disinfectants will vary, the average environment tax rate applied to each product will range from 500-5,000 dong per kilogram.

Saigon Giai Phong

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