Under a resolution passed on April 12, the environmental protection tax on petrol (excluding ethanol), diesel, kerosene, mazut and aviation fuel will be reduced to VND 0 per litre. The special consumption tax on petrol has also been cut to 0 per cent.
The policy will take effect from April 16 until June 30.
The National Assembly approves the Resolution on environmental protection tax, value-added tax (VAT), and special consumption tax for petrol and oil, and jet fuel on April 12 (Photo: Pham Thang).
To ensure flexibility in managing the domestic fuel market in line with global price movements, the National Assembly has authorised the government to adjust the duration of the policy if necessary, including shortening or extending its validity.
In urgent cases, the government is also empowered to revise regulations on environmental protection tax, value added tax and special consumption tax applied to fuel and aviation products.
According to a government report, the tax cuts are expected to reduce state budget revenue by around VND 7.30 trillion (approximately USD 290 million) per month.
“However, this is a special fiscal measure applied under exceptional circumstances to ensure stable supply, limit the impact of energy price fluctuations, and contribute to macroeconomic stability and social security,” the report said.
