The Vietnamese National Assembly has introduced a new resolution to support the domestic fuel market by applying a zero tax rate on petrol, diesel, kerosene, mazut, and aviation fuel. This decision, approved on April 12 and effective from April 16, aims to buffer the local market against global energy price volatility, providing financial relief to consumers and businesses.
The resolution reduces the environmental protection tax, VAT, and SCT to zero for key energy products through June 30, 2026. During this period, fuel prices in Vietnam will not be subject to the usual taxes, aligning local prices more closely with international trends. The national government retains the authority to adjust the duration of these tax exemptions based on market conditions.
Background and Implementation
According to the resolution, the tax exemptions are part of a broader effort to stabilize Vietnam’s energy costs and support economic resilience. The NA also authorized the government to extend or shorten the tax relief period, with provisions for urgent adjustments if necessary. Business entities involved in importing and selling fuel will benefit from not having to declare or pay VAT at sale or importation points.
"This measure is crucial to help ease the financial burden on consumers and industry during a period of global energy price fluctuations," said Minister of Finance Ngo Van Tuan.
Deputy officials and economic experts anticipate that the tax relief will contribute to lower retail fuel costs in Vietnam, thus aiding inflation control and economic stability. Future adjustments depend on international market developments and the government’s assessment of energy supply and demand dynamics.
