Ministry proposes extending fuel tax cuts

Ministry proposes extending fuel tax cuts

The proposal would also maintain existing reductions in environmental protection tax and value-added tax (VAT) on gasoline and aviation fuel that were introduced under earlier government resolutions.

A Petrolimex fuel station in Hưng Yên Province. — VNA/VNS Photo

The Ministry of Finance (MoF) has proposed extending tax reduction measures on gasoline and aviation fuel until September 30, three months beyond their scheduled expiry at the end of June, according to a draft resolution under review.

Under the proposal, tax incentives currently applied to gasoline and fuel-related raw materials would remain in effect from July 1 to September 30.

The ministry also suggested extending the implementation of Decree 72/2026, which provides preferential import tariff reductions for certain fuel products and related inputs.

The proposal would also maintain existing reductions in environmental protection tax and value-added tax (VAT) on gasoline and aviation fuel that were introduced under earlier government resolutions.

The MoF said the extension would help stabilise 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.

During previous discussions on fuel tax policy, several lawmakers urged the Government to extend the measures through the end of 2026, or at least until September 30, arguing that a longer timeframe would provide greater certainty for businesses and consumers. 

Bizhub