Vietnam’s Environmental Protection Tax Law came into effect on January 1, 2012. It regulates eight categories of goods subject to the law, including fuels (gasoline, jet fuel, diesel, kerosene, heavy oil, lubricating oil, lubricant), coal, HCFC solutions, plastic bags, pesticides for the restricted use of forest products, warehouse disinfectants, and termite control agents.
According to the General Department of Taxation of Vietnam, the first eight items will cause widespread environmental pollution when used. Therefore, those who use these items should be taxed. In order to save the tax authorities the cost of collecting environmental taxes, the environmental tax applies to households, individuals and organizations engaged in the production of these items.
Vietnam's Environmental Tax Law also stipulates that the Standing Committee of the National Assembly will specifically regulate the following tax rates for the first eight categories of goods, which may be adjusted as necessary: 1. Gasoline and aviation gasoline: 1,000 VND per liter; 2. Other fuels: 300 VND per liter; 3. Antraxit coal: 20 VND per metric ton; 4. Other coal: 10,000 VND per metric ton; 5. HCFC solution: 4,000 VND per kilogram; 6. Plastic bags: 40,000 VND per kilogram; 7. Pesticides: 500 VND per kilogram; 8. Other residual pesticides: 1,000 VND per kilogram. (Note: The current official exchange rate is 1 USD = 20,803 VND plus or minus 1%).
Data released by the General Statistics Office of Vietnam recently shows that the country's GDP grew by 5.89% in 2011 compared to 2010, lower than the 6.78% growth rate in 2010. The General Statistics Office stated that although Vietnam's economic growth slowed in 2011, it still maintained macroeconomic stability and a relatively reasonable growth rate despite increasing inflationary pressures.
According to statistics, in 2011, Vietnam's agriculture, forestry and fisheries sector grew by 4%, industry and construction by 5.53%, and services by 6.99%. Furthermore, Vietnam's fixed asset investment reached 878 trillion VND (approximately US$41.8 billion), a year-on-year increase of 5.7%.
Source: Taiwan Economic and Trade Network (2012-02-03)
