Vietnam proposes extending 0% fuel tax policy through June
The Ministry of Finance has submitted a document to the Ministry of Justice for appraisal of a draft resolution on adjusting environmental protection tax, value-added tax and special consumption tax on petroleum and aviation fuel.
Under the draft, the Ministry of Finance proposes extending the application of tax reductions, similar to those under Decision No. 482/QD-TTg, from 00:00 on April 16, 2026 to the end of June 30, 2026.
The Ministry said the proposed tax levels are expected to reduce state budget revenue by about VND 7.2 trillion per month.
Reducing fuel taxes to 0% is expected to lower logistics and production costs, thereby reducing product prices, enhancing economic competitiveness, supporting inflation control, stabilizing the macroeconomy and promoting short-term economic growth.
For consumers, the tax cut would directly reduce fuel expenses and contribute to lower prices of goods and services, particularly transport and daily living costs. This is expected to help improve purchasing power and stabilize living standards, especially amid rising living costs, while providing financial support to ease difficulties and support production and business activities.
For businesses, the policy would significantly reduce input costs, particularly in transport, manufacturing and logistics sectors, thereby improving operational efficiency, enhancing recovery capacity and enabling business expansion. Lower costs would also allow firms to adjust prices and strengthen competitiveness in both domestic and international markets.
Currently, fuel-related taxes are being implemented under Decision No. 482/QD-TTg issued by the Prime Minister on March 26 in cases deemed necessary for national interests.
Economists said the decision reflects a flexible and timely policy response amid volatility in global energy markets, helping ease domestic fuel prices while acting as an important buffer for the economy.
Hai Phong News