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| Minister of Finance Ngo Van Tuan presents the Government’s proposal__Photo: VNA |
The National Assembly on April 9 afternoon heard a Government proposal and a appraisal report on a draft resolution introducing special tax measures for petrol, oil and aviation fuel, including environmental protection tax, value-added tax (VAT) and excise tax.
Presenting the Government’s proposal, Minister of Finance Ngo Van Tuan stressed that escalating tensions in the Middle East have triggered sharp fluctuations in global energy prices, particularly oil and gas, disrupting supply chains and pushing up crude oil prices. These developments have significantly impacted Vietnam’s fuel market, driving up retail prices in a short period and affecting business activities as well as daily life and income of people.
To address the situation, the Government has deployed fiscal measures, including issuing Decision 482/QD-TTg, which temporarily reduced the three taxes from March 26 through April 15, 2026. The move helped bring down fuel prices, but was designed only as a short-term emergency measure while geopolitical risks remain unpredictable.
The draft resolution, therefore, proposes a longer-term policy framework to help maintain macroeconomic stability, curb inflation and stabilise public sentiment. Under the proposal, the environmental protection tax on petrol (excluding ethanol), diesel, aviation fuel, kerosene and mazut will be reduced to zero Vietnamese dong per litre. These products will also be exempt from VAT declaration and payment while still allowing input VAT credit. In addition, the excise rate on petrol of all types will be cut to 0 per cent.
The draft sets the implementation period from April 16 to June 30, 2026, and assigns the Prime Minister authority to issue specific decisions to shorten or extend the resolution’s validity, ensuring flexible management of the domestic fuel market in line with global oil price developments.
Presenting the appraisal report, Chairman of the Committee for Economic and Financial Affairs Phan Van Mai said the panel largely endorsed the need for the policy as proposed by the Government. However, it stressed that tax cuts should be accompanied by broader, well-coordinated measures, including tighter price management, enhanced transparency in base fuel price calculations, strengthened supply chain resilience, and stricter oversight to curb hoarding and speculation, in order to improve policy effectiveness and ensure consistency with the Party and State’s orientations.
Most deputies backed the proposed timeframe from April 16 to June 30 this year, though some suggested a longer application period in light of ongoing Middle East tensions and their impact on global oil prices, to better support macroeconomic stability and growth.
To ensure flexibility and timely response in line with Conclusion 18-KL/TW dated April 2, 2026 of the Party Central Committee, some delegates proposed authorising the Government to adjust the resolution’s duration. Others recommended that, in keeping with legislative authority, any such adjustments should be submitted to the NA Standing Committee for consideration.
Several opinions also favoured granting the Prime Minister the power to modify the resolution’s validity, while calling for tighter safeguards, including a cap on the maximum extension period and clearly defined conditions for any extension, such as the continuation of the Middle East conflict and its sustained impact on global oil markets.- (VNA/VLLF)
