On April 12, within the framework of the first session of the 16th National Assembly, the National Assembly (NA) passed a Resolution on environmental protection tax, value-added tax (VAT), and special consumption tax on gasoline, oil and aviation fuel, with 100% of participating delegates voting in favor. The Resolution takes effect from April 16 through June 30, 2026.
The Resolution includes breakthrough provisions aimed at reducing cost pressures for citizens and businesses. Specifically, the Resolution sets the environmental protection tax rate for gasoline (excluding ethanol), diesel oil, kerosene, mazut oil and aviation fuel at 0 VND/liter. This marks the deepest reduction ever recorded for this tax category.
National Assembly reduces tax on fuel to 0% by June 2026.Regarding VAT, gasoline, diesel oil, kerosene, mazut oil, and aviation fuel are not subject to VAT declaration and payment, but are eligible for input VAT deduction.
Regarding the special consumption tax, the tax rate for all types of gasoline is 0%.
To ensure the domestic management of gasoline, oil, and aviation fuel aligns with global market price fluctuations, the NA assigned the Government to issue a Resolution to adjust (shorten or extend) the effective period of this Resolution.
In emergency cases, the Government can adjust the regulations on environmental protection tax, VAT, and special consumption tax stipulated in this Resolution and report to the NA at the nearest session.
Delegates agreed on the necessity of issuing the Resolution to respond to global petroleum price developments. Photo: Chinhphu.vn.During the effective period of this Resolution, should there be any discrepancies between its provisions and other legal documents regarding environmental protection tax, VAT and special consumption tax, the provisions of this Resolution shall prevail.
Business establishments and importers of gasoline, diesel oil, kerosene, mazut oil and aviation fuel are not required to declare and pay VAT upon sale and at the importation stage.
Matters concerning environmental protection tax, VAT, and special consumption tax not stipulated in this Resolution shall be implemented in accordance with current laws on taxes, tax administration and other relevant legal regulations.