Vietnam parliament approves zero taxes on fuel through June

On Sunday morning, all 460 NA deputies present voted in favor of the resolution.

The conflict involving the U.S., Israel, and Iran in the Middle East, which erupted on February 28, has caused sharp fluctuations in global energy prices, especially crude oil and natural gas.

Supply disruptions have pushed global oil prices upward, directly affecting Vietnam’s domestic fuel market and creating short-term price spikes that burden businesses and consumers.

The resolution stipulates a temporary revision of environmental protection tax, value-added tax (VAT), and special consumption tax for fuel.

Under the newly-approved resolution, the environmental protection tax on gasoline (excluding ethanol), diesel, kerosene, mazut, and jet fuel is set at zero.

Besides, fuel products are not subject to VAT declaration or payment, but input VAT is still deducted.

The special consumption tax on gasoline is set at zero.

The tax measures will take effect from April 16 and remain valid until June 30.

The government is authorized to shorten or extend the timeline depending on global oil market conditions, as well as make emergency adjustments to tax policies if necessary.

Any such changes must be reported to the National Assembly at the nearest session.

Where inconsistencies arise between this resolution and existing tax laws, the provisions of the resolution will take precedence for its duration.

Businesses and importers of gasoline, diesel, kerosene, mazut, and jet fuel are not required to declare or pay VAT at the point of sale or at the import stage.

Any provisions relating to environmental protection tax, VAT, and special consumption tax that are not specified in this resolution shall comply with existing laws on taxation, tax administration, and other relevant legal regulations.

Minister of Finance Ngo Van Tuan had previously stated that following discussions, the majority of NA deputies supported the adoption of the resolution.

According to the minister, the government conducted a comprehensive review, fully incorporated feedback, provided detailed explanations, and refined the draft resolution in a report on the reception, explanation, revision, and completion of the draft submitted to NA deputies.

Also, the government directed the drafting unit to coordinate with the Ministry of Justice and several NA committees to technically review and revise the draft in accordance with procedures under the Law on Promulgation of Legal Documents before submitting it for approval.

The first session of the 16th National Assembly was officially convened on April 6 in Hanoi.

The sitting was scheduled to last about 11 working days and would be held in two phases, from April 6 to 12 and from April 20 to 23, with April 24 and 25 kept in reserve.