Cool down inflationary pressure
Talking to Lao Dong, Dr. Tran Van The - economic expert, Chairman of the Board of Directors of INDEL Investment and Development Joint Stock Company assessed that the National Assembly's approval of the Resolution on environmental protection tax, value-added tax, special consumption tax on gasoline, oil and aviation fuel is a flexible, timely and clearly targeted fiscal policy decision in the context of the economy being under a lot of pressure from external fluctuations.
This is not only a policy response to the complex developments of the world energy market, but also demonstrates the proactive role of the State in using tax tools to regulate the macroeconomy, stabilize market sentiment and support growth" - Dr. Tran Van The emphasized.
Considering the macroeconomic perspective, Dr. Tran Van The assessed that bringing the environmental protection tax on gasoline and oil to 0 VND/liter, while applying a special consumption tax rate of 0% and adjusting the value-added tax mechanism in the direction of not having to declare and calculate payment but still deduct input, will create a direct impact on reducing retail gasoline and oil prices in the country. Gasoline and oil are one of the important input factors, with a widespread effect on most industries and sectors of the economy. Therefore, when gasoline and oil prices decrease, the consequence will be a reduction in production, transportation and circulation costs of goods, thereby contributing to cooling down inflation pressure, stabilizing the price level and supporting people's purchasing power.
For consumers, the impact of policies is also very clear. Reduced gasoline prices will lead to a decrease in living costs, especially travel costs and prices of essential goods and services. In the context that the income of a part of the population is still affected after global economic fluctuations, reducing spending pressure will contribute to improving living standards and stimulating domestic consumption.
In particular, from the perspective of managing the gasoline and oil market, the tax reduction policy also contributes to creating conditions for the price mechanism to operate more flexibly, limiting the situation of "price shock" when the world market fluctuates strongly. The room for price management agencies to operate will be wider, thereby helping to reduce fluctuation bands and stabilize market sentiment.
Reducing input cost pressure, supporting production and business
Looking from a business perspective, Dr. Tran Van The believes that for industries that use a lot of fuel such as transportation, aviation, logistics, construction or industrial production, this policy is meaningful as a practical "support medicine".
In the context that many businesses are still facing difficulties with increased input costs and the consumption market has not really recovered strongly, reducing gasoline prices will help improve profit margins, increase competitiveness and create conditions for businesses to maintain, even expand production and business activities" - Mr. The analyzed.
Talking to Lao Dong Newspaper, Mr. Vu Manh Thang - Manager of Cuong Thang Trading and Transportation Services Joint Stock Company (specializing in transporting goods from North - Central - South) - said that businesses mainly use diesel oil, so fuel price fluctuations directly affect input costs.
At one point, oil prices increased to more than 40,000 VND/liter due to the impact of the world situation, causing the cost for each trip to almost double. Meanwhile, due to having to share difficulties with customers and maintain market share, businesses only adjusted freight rates up by about 20-30%. Therefore, the National Assembly's decision to simultaneously reduce taxes on gasoline and oil to 0% until the end of June 30, 2026 has a very positive, timely and accurate impact on the "bottleneck" of the transportation industry.
Fuel costs account for a large proportion of the total operating costs of transport businesses, especially for road exploitation and long-distance logistics units. Bringing environmental protection tax, value-added tax and special consumption tax to 0% helps significantly reduce gasoline and oil prices, thereby directly reducing input costs. With a large fleet, just a few thousand VND/liter of fuel price reduction can help businesses save a lot" - Mr. Thang assessed.
* Chairman of Hanoi Taxi Association Nguyen Cong Hung said that the National Assembly accompanying the Government in issuing a resolution to reduce taxes on gasoline, oil and aviation fuel (including Environmental Protection Tax, VAT, Special Consumption Tax) to 0% from April 16 to the end of June 30 is a major policy to support businesses.
According to Mr. Hung, with this policy, the State will have to compensate a significant budget to support businesses, especially transportation businesses. When input costs decrease, the market will also stabilize, creating motivation for business recovery.
* Sharing the same view, Mr. Do Van Bang - Chairman of the Hanoi Transport Association - assessed that the reduction of taxes on gasoline, oil and aviation fuel is a positive sign. The National Assembly and Government's decision to reduce taxes shows drastic and timely management to stabilize market prices and support businesses to overcome difficulties.
However, the extension of the tax reduction policy will depend on the developments of the world situation, especially the Middle East region. The business community hopes that conflicts will be controlled soon, and global security solutions will be ensured to ensure smooth trade activities, contributing to economic stability. At the same time, businesses also expect to continue to receive companionship and support from the Government in the process of recovery and development. Dang Tien
