The Vietnamese National Assembly’s Finance and Budget Commission estimates the yearly revenue from environment tax will be between VND14.3 trillion ($752 million) and VND57 trillion ($3 billion). The commission announced the estimate in a discussion on the draft Law on Environment Tax at the NA’s 7th working session May 31. The government plans to impose environment tax on five goods, comprising oil and gas, coal, hydro-chloro-fluoro-carbons (HCFCs), plastic bags, and pesticides, the Vietnam News Agency said June 1, citing Finance Minister Vu Van Ninh. Most NA deputies, meanwhile, said all products and goods that causes harmful effects to the environment should be applied the tax. The imposition would help limit production and consumption of items that are unfriendly to the environment, Finance Minister Vu Van Ninh said. The Commission also raised concerns over whether current regulations on collecting environmental fees should be abolished as the tax law takes effect. Tran Du Lich, NA deputy of Ho Chi Minh City, said the draft law seems to focus on budget revenue rather than environment protection. Vietnam spends some VND4 trillion from the state budget for environment protection each year, but the fees on environment protection collected annually is only VND1.2 trillion.
