Vietnam extends fuel tax relief measures until end-2026

Vietnam has extended a series of fuel-tax relief measures until the end of 2026, according to a government statement. The decision comes after the initial introduction of these measures earlier this year to stabilize the domestic market amidst supply concerns triggered by the Middle East conflict. The extended package aims to ensure energy security, stabilize the economy, curb inflation, and support business activity.

The government's resolution, signed on September 30, maintains reduced import tariffs on gasoline, diesel, fuel oil, jet fuel, and crucial refinery feedstocks through December 31. This includes a significant reduction in the preferential import duty on gasoline from 10% to 0%. Diesel, fuel oil, kerosene, and jet fuel tariffs are set at 0% rather than 7%, while several petrochemical feedstocks also see their tariffs reduced to zero.

Additional measures include maintaining environmental protection and value-added tax rates at zero for gasoline and petroleum products until the end of 2026. These fuel-tax relief initiatives were first introduced in March and have since been extended multiple times.