National Assembly temporarily removes fuel taxes through June

The move comes against the backdrop of escalating tensions in the Middle East since February 28, which have triggered sharp global energy price hikes, particularly crude oil and natural gas. 

Supply disruptions have driven oil prices higher, placing pressure on Viet Nam's domestic fuel market and increasing costs for businesses and consumers.

Under the resolution, several key fuel-related taxes—including the environmental protection tax, value-added tax (VAT), and special consumption tax—will be temporarily removed.

Specifically, the environmental protection tax on gasoline (excluding ethanol), diesel, kerosene, mazut, and jet fuel will be cut to zero. Fuel products will also be exempt from VAT declaration and payment, although businesses will still be allowed to deduct input VAT. In addition, the special consumption tax on gasoline will be reduced to zero.

These measures will take effect from April 16 and remain in force until June 30.

The Government has been authorized to adjust the timeline—either shortening or extending it—depending on developments in the global oil market, and may introduce emergency tax policy changes if necessary. Any such adjustments must be reported to the NA at its nearest session.

During the implementation period, the resolution will take precedence over any conflicting provisions in existing tax laws. Businesses and fuel importers will not be required to declare or pay VAT at the point of sale or import.

Other tax-related provisions not covered by the resolution will continue to follow current laws and regulations.

Minister of Finance Ngo Van Tuan previously noted that the majority of lawmakers supported the proposal following thorough discussions. He added that the Government had carefully reviewed feedback, provided detailed explanations, and refined the draft resolution before submitting it for approval./.