In brief
The Hanoi government has suspended the special consumption tax on regular gasoline and biofuels—previously set at 10%, 8%, and 7%—until the end of March 2027. The policy follows a resolution approved on Saturday, with earlier partial reductions from late March to June 2026. Environmental protection tax and value‑added tax exemptions remain in force through 2026.
Vietnam has lowered the special consumption tax on all gasoline types to zero percent through March 31, 2027, a step announced by a government resolution on Saturday and reported by Xinhua on Sunday in Hanoi.
Under the Special Consumption Tax Law, which took effect on July 1 this year, regular gasoline carried a 10 percent tax while E5 and E10 biofuels were taxed at 8 and 7 percent, respectively. The new resolution suspends those rates entirely, reversing a temporary zero‑tax period that had begun in late March 2026 to help stabilize the domestic market.
The environmental protection tax on gasoline and oil products remains at zero Vietnamese dong per liter, and these fuels are also exempt from value‑added tax declaration and payment under a policy that has been extended through the end of 2026, the report added.
These moves represent a broad effort by Vietnam’s authorities to reduce fuel costs for consumers and businesses, while keeping special environmental and tax benefits unchanged amid the upcoming policy change.
