HANOI, March 24 (Xinhua): Vietnam's Ministry of Finance has proposed cutting the environmental protection tax on gasoline and diesel by half amid rising global fuel prices triggered by conflict in the Middle East, local media VnExpress reported Tuesday.

Under the draft resolution, the tax on gasoline, excluding ethanol, would be reduced from 2,000 Vietnamese dong (about 0.08 U.S. dollars) to 1,000 Vietnamese dong (about 0.04 dollars) per liter, while the tax on diesel would be cut from 1,000 Vietnamese dong (about 0.04 dollars) to 500 Vietnamese dong (about 0.02 dollars) per liter.

The tax on jet fuel is also proposed to be lowered by 500 Vietnamese dong (about 0.02 dollars) to 1,000 Vietnamese dong (about 0.04 dollars) per liter, the report said.

The move is expected to help curb inflation by lowering retail fuel prices, while reducing state budget revenue by about 1.79 trillion Vietnamese dong (about 67.93 million dollars) per month, according to the ministry.

Vietnam's environmental protection tax currently accounts for about 6.7 percent of the components that make up the base price of petroleum products, the report added.

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