Broad consensus on the need to issue a resolution to reduce petrol and aviation fuel taxes

On the afternoon of April 10, the National Assembly continued its session program by discussing in plenary the draft Resolution on a number of provisions concerning environmental protection tax, value-added tax (VAT), and excise tax on gasoline, diesel, and aviation fuel.

Key tax measures in the draft Resolution

Under the draft, the environmental protection tax rate on gasoline (excluding ethanol), diesel, aviation fuel, kerosene, and mazut is set at zero đồng per liter.

Gasoline, diesel, aviation fuel, kerosene, and mazut are not subject to VAT declaration or payment, but they are deductible for input VAT.

The excise tax rate on all types of gasoline is zero percent.

Rationale for urgency and timing

Earlier, during the morning session in committees, deputies said the enactment of the Resolution is necessary and urgent due to complex and unpredictable developments in the global energy market.

Deputy Ta Văn Hà (Da Nang) said the Resolution is an important measure to stabilize domestic gasoline prices and reduce the adverse effects of global fuel price volatility. He proposed applying the policy from April 16 to June 30, describing it as a temporary, expedient measure that should be implemented quickly to maximize impact.

He also supported granting the Government and the Prime Minister authority to adjust the implementation period if needed to ensure flexibility in policy execution.

Calls for energy security and supporting structural measures

In addition to tax exemptions and reductions, many deputies argued that structural measures are needed to ensure national energy security.

Deputy Ta Văn Hà proposed optimizing domestic production capacity, particularly by accelerating the operations and expansion of the Nghi Sơn and Bình Sơn refinery plants. He said that at full capacity, these plants could meet 70–80% of domestic gasoline demand, which would reduce reliance on imports.

He further emphasized the need to build a national fuel reserve system, calling for a large independent storage capacity with a target reserve level equivalent to about 90 days, in line with international practice, to improve resilience against market volatility.

Deputies also highlighted the importance of energy transition and energy efficiency, including promoting biofuels, renewable energy, and electric vehicles to reduce dependence on conventional gasoline and support sustainable development.

Debate on extending the implementation period

Agreeing on the necessity of enacting the Resolution, Deputy Trần Hoàng Ngân (Ho Chi Minh City) suggested extending the implementation period to the end of 2026 or at least to September 30 to provide stable expectations for businesses and people. He noted that, given volatile gasoline prices, maintaining the policy for a sufficiently long period would support business recovery and ease cost pressures.

Deputy Trần Hoàng Ngân also urged the Government to develop a long-term energy security strategy, promote a green energy transition, monitor prices of goods, and strengthen anti-smuggling measures in gasoline and oil.

Deputy Nguyễn Minh Sơn (Đồng Tháp) supported extending the policy to June 30 as proposed in the Government’s submission. He argued that extending the policy would place a heavy burden on the state budget, estimating that exemptions and reductions could reduce monthly revenue by about 7,300 billion đồng, affecting fiscal balance, public investment, and social welfare programs.

Accordingly, deputies urged careful balancing between the objective of support and budget feasibility, and asked the Government to adjust flexibly based on actual conditions.

Next steps and expected impact

Concluding the discussion, Vice Chairwoman of the National Assembly Nguyễn Thị Hồng said there is broad agreement on the necessity of enacting the Resolution and urged early passage to enable timely implementation.

Deputies also called on the Government to implement price management, ensure supply, stabilize markets, prevent hoarding and profiteering under the policy, and assess macroeconomic impacts to tailor appropriate measures.

The Standing Committee of the National Assembly will consolidate and incorporate opinions to finalize the draft for consideration and early approval.

The Resolution is expected to help ease costs for businesses, support people, and maintain macroeconomic stability amid current volatility.