In brief
On Sunday, Hanoi officials announced that the special consumption tax would be reduced to 0% on all gasoline varieties until March 31, 2027, following a government resolution. The move, which follows a temporary exemption earlier this year, is paired with continued VAT relief and a zero environment protection tax, according to Xinhua.
On Sunday, Hanoi released a government resolution that would reduce the special consumption tax on all gasoline types to zero—effective immediately and continuing until March 31 2027, according to a report by Xinhua citing local daily VnExpress.
Under Vietnam’s special consumption tax law, which went into force on 1 July 2026, gasoline has carried distinct rates: 10 percent on regular gasoline, 8 percent on E5 bio‑fuel blends, and 7 percent on E10 blends. The new resolution lifts all those rates to 0 percent for the next two and a half years.
Earlier in the year, the government had suspended the special consumption tax on gasoline from late March until the end of June 2026 as a means to calm the domestic fuel market, a measure again now being extended. This policy had been applied to every gasoline variant.
Meanwhile, the environmental protection tax on gasoline and oil products remains at zero Vietnamese dong per liter, a stance that has not changed since the tax’s introduction.
In addition to the tax waiver, gasoline and oil products remain exempt from value‑added tax declaration and payment. This exemption is in force through the end of 2026, according to Xinhua’s report of the VnExpress coverage.
The decision was announced on a Sunday, with the resolution issued the previous Saturday. The move, outlined by Hanoi’s economic ministries, is intended to keep fuel prices stable amid volatile international markets and to support domestic consumption during the foreseeable coming year.
Experts from VnExpress noted that the tax structures and exemptions are part of a broader policy package aimed at easing market pressures. While the special consumption tax gag will have a price‑smoothing effect, the zero environmental protection tax and VAT exemption are likely to keep production and retail costs at current levels at least through the June deadline for the latter.
Legal scholars say that the zero rates for the next 2 years will preserve revenue streams from other sources while keeping gasoline comparatively cheap. The deadline of 31 March 2027 is highlighted in the resolution, after which the special consumption tax would return to its pre‑2026 levels.
