Environmental protection tax on gasoline, diesel and aviation fuel set to zero dong per liter for a limited period

On the morning of April 12, the National Assembly passed a resolution regulating certain provisions on the environmental protection tax, value-added tax (VAT), and excise tax on gasoline, diesel, and aviation fuel, to be applied for a limited period. The resolution was approved with 100% of delegates voting in favor.

Earlier, the National Assembly heard Finance Minister Ngo Van Tuan, acting on behalf of the Prime Minister, present the explanatory report, reception, and revisions to the draft resolution on environmental protection tax, VAT, and excise tax on gasoline, diesel, and aviation fuel. Based on the Standing Committee of the National Assembly’s conclusions, the Economic and Financial Committee’s opinions, and remarks from deputies, the Government reviewed the draft, incorporated as much as possible, explained, and revised it before submitting it to the National Assembly for consideration and approval. The drafting agency also coordinated with the Ministry of Justice and other bodies to review and revise the draft to ensure compliance with the process and procedures for promulgating legal normative documents.

Effective period and government authority

Under the resolution, the effective period runs from 16 April 2026 to 30 June 2026.

The National Assembly tasked the Government with issuing a resolution to decide certain contents to ensure the domestic operation of the gasoline, diesel, and aviation fuel markets in line with global price movements, and to report to Parliament at the next session.

Specifically, the Government may adjust the resolution’s effective date. In emergencies, it may adjust provisions on environmental protection tax, VAT, and excise tax as authorized.

Key tax provisions

The resolution consists of four articles. It sets the environmental protection tax for gasoline (excluding ethanol), diesel, kerosene, mazut, and aviation fuel at 0 dong per liter.

For these items, they are not subject to declaration or payment of VAT, but input VAT can be deducted. The excise tax rate on gasoline is set at 0%.

Priority over other tax laws and VAT/excise declaration requirements

During the period the resolution is in effect, if there are discrepancies between this resolution and other related tax laws, the resolution shall prevail.

Businesses and importers of gasoline, diesel, kerosene, mazut, and aviation fuel are not required to declare or pay VAT at sale or import. Other contents not specified in the resolution will be implemented in accordance with existing tax laws and tax administration.