Gov’t agrees to extend fuel tax cuts by three months
VGP - The Government has issued a Resolution on extending tax reduction measures on gasoline and aviation fuel until September 30, three months beyond their scheduled expiry at the end of June.
Under the Resolution, tax incentives currently applicable to gasoline and fuel-related raw materials would remain in effect from July 1 to September 30.
The Government also agreed to extend the implementation of Decree 72, which provides preferential import tariff reductions for certain fuel products and related inputs.
Existing reductions in environmental protection tax and value-added tax (VAT) on gasoline and aviation fuel will be maintained.
The Ministry of Finance noted that the extension would help stabilize the domestic petroleum market, strengthen energy security and support macroeconomic stability amid continued volatility in global energy markets.
Since late March, the Government has introduced a series of tax relief measures on petroleum products, reducing environmental protection taxes on gasoline, diesel and aviation fuel to zero, cutting the special consumption tax on gasoline to zero, and removing VAT on those products while allowing businesses to continue claiming input tax deductions.
The measures were initially set to remain in force until June 30.
For the aviation sector, maintaining preferential tax treatment for aviation fuel is expected to help lower operating costs for airlines as global oil prices remain subject to fluctuations./.
