In Hanoi, Vietnam, officials have announced that the special consumption tax on all gasoline types will now be zero percent through March 31, 2027, a change that will reduce fuel costs for consumers and the transport sector.
The decision follows a government resolution issued on a Saturday, as reported by local daily VnExpress, and was confirmed by the state news agency Xinhua. Under Vietnam’s Special Consumption Tax Law, which took effect on July 1 of the same year, the tax rates were set at 10 percent for regular gasoline, 8 percent for E5 biofuel, and 7 percent for E10 biofuel. Those rates have been suspended to zero percent from now until the end of March next year.
Previously, the tax had been temporarily reduced to zero from late March to June 2026 to help stabilize the domestic market amid volatile global oil prices. The new resolution extends the waiver beyond the earlier period, easing the fiscal burden on motorists, freight companies, and small businesses that rely on diesel and gasoline.
While the special consumption tax is now waived, other related taxes remain unchanged. The environmental protection tax on gasoline and oil products continues to be set at zero Vietnamese dong per liter, as per the current policy. In addition, these products are exempt from value‑added tax (VAT) declaration and payment under a separate policy that has been extended through the end of 2026.
Analysts say the waiver is part of Vietnam’s broader effort to stimulate domestic demand and support the economy, particularly in the transportation and logistics sectors that are key to the country’s growth plans. By removing the special consumption tax, the government aims to lower fuel prices, thereby reducing operating costs for businesses and providing relief to everyday commuters.
Business owners in the logistics industry have welcomed the announcement. One local trucking company, whose name was not disclosed, said the tax waiver would help keep freight costs competitive. Likewise, regular commuters could see savings reflected at the pump, which may encourage increased vehicle usage and spur ancillary spending on road services and maintenance.
The move also aligns with environmental considerations, as the special consumption tax was originally introduced to discourage excessive fuel use and to fund environmental protection efforts. However, the current exemption still preserves the environmental protection tax at its zero-dong level, meaning no additional levy will be imposed on gasoline and oil products to support environmental initiatives during the waiver period.
In summary, Vietnam’s decision to reduce the special consumption tax on gasoline to zero until March 31, 2027, reflects a policy shift aimed at easing fuel costs for the public and businesses alike, while maintaining existing environmental and VAT frameworks through 2026.
