The General Department of Vietnam Customs issued official letter no. 3398/TCHQ-TXNK dated 30 May 2019 guiding on Environmental protection tax on processed oil and white oil (petrol).
The General Department of Customs received Official Letter No. 1129 / HQHN-TXNK dated April 17, 2019 of the Customs Department of Ho Chi Minh City. Hanoi reflects the problem of tax refund for environmental protection of white oil products of Vietnam Color Production and Trading Company Limited. In this regard, the General Department of Customs has the following opinions:
Regarding the determination of objects subject to environmental protection tax on processed and white oil products, the Ministry of Finance issued Official Letter No. 1797 / BTC-CST dated February 14, 2019 guiding the implementation (attach attached).
Hanoi Customs Department is proposed to comply with the guidance in the above-mentioned Official Dispatch No. 1797 / BTC-CST. The content of this Official Letter replaces the guidance on environmental protection tax at Point 2 of Official Letter No. 570 / TCHQ-TXNK dated January 29, 2018 of the General Department of Customs.
The General Department of Customs answers to the Ha Noi Customs Department for acknowledge and action.
Contents of Official Dispatch No. 1797 / BTC-CST as below:
The Ministry of Finance received Official Letter No. 0209/2018 / CV-NCA dated September 14, 2018 of European Plastic Joint Stock Company, Official Letter No. 01 / CV / 2018 dated 11/24/2018 of JOTUN Paint Co., Ltd. Vietnam, Official Letter No. 28684 dated 18/6/2018 of Yokohama Tire Vietnam Co., Ltd., Official Letter No. 14 / SV-NKPL dated 11/9/2018 of Sailun Vietnam Co., Ltd. requesting tax instructions environmental protection (EP) for treated oil, white oil – another name is rubberized plasticizing oil (HS codes 184.108.40.206 and 220.127.116.11) imported; Based on the comments of the Ministries (Ministry of Justice in Official Letter No. 3395 / BTP-PLDSKT dated 11/9/2018, Ministry of Natural Resources and Environment in Official Letter No. 5078 / BTNMT-TCMT dated September 18, 2018, Ministry of Science and Technology in Official Letter No. 2877 / BKHCN-TDC dated September 14, 2018, Ministry of Industry and Trade in Official Dispatch No. 7105 / BCT-XNK dated September 4, 2018), the Ministry of Finance comments as follows:
– In Clause 1, Article 3 and Clause 1, Article 4 of the Law on Environmental Protection Tax specifies:
“Article 3. Taxable subject
- Gasoline, oil, grease, including:
- a) Gasoline, except ethanol;
- b) aircraft fuel;
- c) diesel oil;
- d) Petroleum;
- e) Fuel oil;
- f) lubricants;
- g) Grease.
- Coal, including:
- a) Lignite;
- b) Anthracite Coal (anthracite);
- c) Fat coal;
- d) Other coal.
- Hydrogen-chlorofluorocarbon liquid (HCFC).
- Taxable-plastic bag.
- Herbicide which is restricted from use.
- Pesticide which is restricted from use.
- Forest product preservative which is restricted from use.
- Warehouse disinfectant which is restricted from use.
- When it is necessary to supplement other taxable objects as per period, the National Assembly Standing Committee shall consider and regulate.
The Government shall specify this Article.
“Article 4. Un-taxable object
- Goods is not specified in Article 3 of this Law shall not be subject to environmental tax.
– In Clause 1, Article 2 of Decree No. 67/2011 / ND-CP dated August 8, 2011 of the Government detailing and guiding the implementation of a number of articles of the Law on Environmental Protection Tax regulations: “The gasoline, oil, grease specified in Clause 1 of Article 3 of the Law on environmental protection tax are the fossil-original gasoline, oil, grease. For fuel mixtures containing biodiesel and fossil-original gasoline, oil, grease, the environmental protection tax is applied only for the part of fossil-original gasoline, oil, grease.”
– According to Vietnam’s List of Export and Import Goods issued by the Ministry of Finance in accordance with Circular No. 65/2017 / TT-BTC dated June 27, 2017 based on the Harmonized System of Goods Description and Encryption World Customs Organization (HS System) and the ASEAN Harmonized Harmonized List (AHTN List), the treated oil, white oil with HS code 18.104.22.168 – is the light crude oil and HS code. 22.214.171.124 – Other types of oil not specified in Clause 1, Article 3 of the Law on Environmental Protection Tax.
Pursuant to the provisions of the law on environmental protection tax mentioned above, petrol, oil and lubricants named in Clause 1, Article 3 of the Law on Environmental Protection Tax are subject to environmental protection tax; Goods not specified in Clause 1, Article 3 of the Law on Environmental Protection Tax are not subject to environmental protection tax; In case of mixed fuel containing biofuels and petrol, oil and lubricants named in Clause 1, Article 3 of the Law on Environmental Protection Tax, the environmental protection tax shall be calculated only for fossil based lubricants , oil and grease.
The amount of collected environmental protection tax on goods are not subject to environmental protection tax as from the effective date of the Law on Environmental Protection Tax is determined as the overpaid tax amount and handled according to the provisions of law on Tax Administration.
The Ministry of Finance respond to the Companies for acknowledge and action.