HCMC – To mitigate the pressure from volatile fuel prices, Vietnam’s Ministry of Finance has proposed extending the current environmental protection tax cut for gasoline, diesel, and lubricants through the end of 2025.
The draft resolution, open for public feedback, aims to stabilize the fuel market amid both global and domestic price volatility, which has impacted costs for businesses and consumers, according to local media.
Under the proposal, tax rates for fuels would remain below the ceiling rates set by Resolution 579, which is slated to take effect in 2025. The ministry noted that higher rates could place an additional strain on the economy, especially with 2025 marking the final year of Vietnam’s current five-year development plan.
The proposed tax cuts would cover categories including gasoline (excluding ethanol), aviation fuel, diesel, kerosene, and lubricants. If these reductions are not extended, fuel taxes will increase in 2026 under Resolution 579, with the gasoline tax doubling to VND4,000 per liter and the aviation fuel tax tripling to VND3,000 per liter.
The ministry estimates that extending these cuts would reduce environmental tax revenue by VND40.2 trillion, affecting total state budget revenue by around VND44.2 trillion.
Plans to offset these losses include improving tax management, combating tax evasion, cutting unnecessary expenses, and leveraging oil revenues if global oil prices increase.
