The Vietnamese National Assembly will not raise the green tax on fuels and lubricants in 2025. Maintaining the rate through the year helps ease financial pressure on businesses and individuals and contributes to economic stability post-pandemic, the government hopes.
In 2010, the leadership decided to levy an additional environmental protection tax on goods that have a negative environmental impact. These included fuels such as diesel, gasoline, jet fuel and coal, lubricants, plastic bags and agri-chemicals.
However, Minister of Finance Nguyen Van Thang believes raising EPT on fuels and lubricants specifically could drive up prices and inflation, hindering economic growth targets.
Higher priced fuel and lubricant could stifle the country’s thriving auto market. Vietnam had the world’s steepest increase in car ownership, according to a report from the International Organization of Motor Vehicle Manufacturers. This means greater lube sales.
The government’s economic strategy also includes the domestic vehicle market growing by 15% per year until 2030.