Vietnam extends environmental tax cut for petroleum products

Vietnam’s National Assembly (NA) Standing Committee has approved an extension of the environmental protection tax cut for petrol, diesel fuel, and lubricants until the end of 2025. Initially scheduled to expire on 1 January 2025, the tax cut aims to support post-pandemic economic recovery, stabilise inflation, and ease financial pressures on businesses and the public.

Petrol (excluding ethanol) will remain taxed at VND2,000 (USD00.08) per litre, while jet fuel is set at VND1,500 (USD0.06) per litre, and diesel at VND1,000 (USD0.04) per litre. Kerosene, mazut oil, lubricating oil, and grease will also benefit from reduced rates to ensure affordability and economic stability.

Previously, the environmental tax rates were VND4,000 (USD0.16) per litre for petrol, VND3,000 (USD0.12) per litre for jet fuel, and similar higher rates for other fuel types. These adjustments reflect the government’s commitment to easing the cost burden for both businesses and individuals during challenging times.

The move aligns with Vietnam’s broader efforts to stabilise its macroeconomic environment, maintain steady growth, and ensure socio-economic resilience in the face of global uncertainties.