Regulatory Update: Law No. 74/2024/QH15 on Environmental Protection Tax

Law No. 74/2024/QH15, passed by the National Assembly on December 20, 2024, is the new governing law for Environmental Protection Tax (EPT/Thuế BVMT) in Vietnam. This Law regulates the determination of taxable objects, non-taxable objects, taxpayers, tax base (quantity of goods subject to tax), tax rates, and policies for EPT exemption and reduction, aiming to incentivize environmentally friendly production and consumption.

Key Highlights

• Scope of Application: EPT applies to goods and services whose usage causes negative impacts on the environment, including gasoline, coal, and certain chemicals.
• Key Updates/Content:
  • Taxable Objects: Details the list of goods (sản phẩm) and services subject to EPT, typically levied on specific quantities of products consumed or sold.
  • Tax Rates (Mức Thuế): Specifies the fixed tax amount per unit (VND/kg or VND/liter) for each taxable product (e.g., gasoline, coal, plastic bags), which is determined by the National Assembly Standing Committee.
  • Tax Exemption/Reduction: Outlines the conditions for EPT exemptions and reductions, often applied to goods temporarily imported/re-exported or in cases of force majeure.
  • Taxpayer: Identifies organizations and individuals who produce, import, or trade in EPT-taxable goods as the key taxpayers.

This summary is provided for reference purposes only and highlights key aspects of Law No. 74/2024/QH15. For full and legally binding content, please refer strictly to the attached official document.

Attached File:

📎 Law No: 74/2024/QH15 (Official PDF – signed & sealed)