In Vietnam, the Ministry of Finance’s amendment to the Environment Protection Tax Law is drawing protests from biofuel producers as it impacts E5. Starting in July, every liter of petrol will be charged an additional VND1,000 in environmental tax.
Tran The Truyen, CEO of Saigon Petro, told VietNamNet Bridge, that if the tax rates are raised as planned by MOF, the price will be only be a little higher than E5 petrol, about VND200 per liter. The modest gap will prompt people to turn their backs to bio-petrol. Truyen suggested applying a lower tax rate on E5 to help encourage the use of biofuel, stressing that most E5 users are low-income earners who need protection.
According to VietNamNet Bridge, “MOF doesn’t think this idea is reasonable. It has rejected the idea of applying preferential tax rates on petrol and oil products meeting Euro 4 and higher standards.”