Vietnam slashes fuel taxes to zero as PM Pham Minh Chinh stabilizes energy market
Prime Minister Pham Minh Chinhas issued Decision No. 482/QD-TTg on March 27, temporarily reducing environmental protection and VAT rates for petrol, diesel, jet fuels, kerosene, LPG gasoil to zero percent effective from midnight until April 15 next year (March 30). This urgent measure aims to shield firms and households in Vietnam's energy market against a global oil price surge.
Key Points
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1Vietnam's government has temporarily set all applicable taxes on petrol at 0% effective March 26 midnight through April 15.
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2The Prime Minister issued Decision No.482/QD-TTg to shield firms and households from surging fuel prices amid global oil volatility, including the Middle East conflict.
Developments
Perspectives
The Vietnamese government has issued urgent fiscal measures including eliminating more than half of its existing taxes on petrol prices.
— [Mar 27, 11:14] Vietnam slashes fuel taxes to zero percent (News.tuoitre.vn)Vietnam is acting as one of the region's fastest policy responders by moving early to cushion firms and households from a surging energy shock caused by global oil volatility.
— [Mar 27, 06:30] Vietnam acts fast to shield firms (Businesstimes.com.sg)The trade ministry announced that temporarily waiving an environmental tax on fuel will cut soaring petrol prices in the country's capital city of Hanoi by more than a quarter.
— [Mar 27, 04:10] Vietnam cuts green taxes (Straitstimes)Petrol and diesel are exempt from value-added tax declarations through April 15 to stabilize energy prices in the domestic market until mid-April next month.
— [Mar 27, 03:59] Viet Nam cuts fuel taxes zero till (En.nhandan.vn)The government has temporarily cut environmental protection and special consumption tax on petrol while still permitting firms to claim input VAT deductions through April mid-month this year next.
— [Mar 27, 03:59] Viet Nam cuts fuel taxes zero till (En.vietnamplus.vn)Prime Minister Pham Minh Chinh issued Decision No. 482/QD-TTg on Thursday evening implementing urgent fiscal relief for fuel prices amid global oil market volatility driven by Middle East tensions and supply chain disruptions, with measures taking effect at midnight until April 15 to stabilize the domestic economy despite an estimated monthly revenue loss of VND7,200 billion.
Vietnam has eliminated multiple taxes on petrol, diesel, jet fuel to reduce retail gasoline prices by nearly 19%, a move estimated to lower state budget revenue but intended as indirect support for households and businesses. This emergency policy response aims to cushion the impact of surging global energy costs driven by Middle East conflicts that have disrupted supply chains in Southeast Asia.
On March 27, Vietnam temporarily waived environmental taxes on gasoline, diesel, and aviation fuels to reduce petrol prices by approximately 26% amid global supply disruptions caused by conflicts in the Middle East affecting oil flows through the Strait of Hormuz. The trade ministry stated this urgent measure aims to stabilize petroleum markets while lowering specific fuel costs from their previous rates effective until April 15.
Viet Nam will exempt VAT declarations for petrolium products from April through mid-April while setting a special consumption rate of 0% due to global oil supply disruptions in the Strait of Hormuz, though this measure is expected to reduce state budget revenue by approximately $276.9 million monthly and requires Government reporting adjustments before March 31st according Resolution No.
Vietnam has temporarily set environmental protection taxes for petrolium products at zero from midnight of April through May under a decision by PM Pham Minh Chinh. This move exempts VAT declarations while allowing input deductions, aiming to stabilize the domestic fuel market amid global supply disruptions despite an estimated monthly revenue loss of 7.2 trillion VND (US$).