HANOI 3 April 2026 (The Capital Post) – The Vietnamese government is evaluating a proposal to reduce certain taxes on selected petroleum products to zero in an effort to ease energy costs and shield consumers from global fuel price volatility.
The proposal, introduced by the Ministry of Finance, suggests removing value-added tax (VAT) and environmental protection tax on specific fuels such as kerosene and mazut. Authorities believe the measure could help lower domestic fuel prices and support economic stability as international energy markets remain uncertain.
Officials noted that Vietnam has previously reduced several other fuel-related taxes, including the special consumption tax, environmental tax and VAT for products such as petrol, diesel and jet fuel. However, kerosene and mazut are still currently subject to environmental taxes of about 1,000 Vietnamese dong per litre or kilogram, along with a 10 percent VAT.
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The latest proposal is expected to be presented to the National Assembly during its upcoming session scheduled to begin on April 6. If approved, the tax reduction could help stabilize the domestic fuel market while easing cost pressures on both households and industries.
Vietnamese authorities are closely monitoring global energy developments, particularly following tensions in the Middle East that have affected oil supply and contributed to rising fuel prices in many countries.-The Capital Post
