Vietnam Eliminates Gasoline Tax to Curb Inflationary Pressures

The Government of Vietnam eliminated the special consumption tax on all types of gasoline effective November 1, 2026. Under Government Resolution 45/2026/NQ-CP, the tax rate is reduced to zero percent from previous rates ranging between 7 and 10 percent. This measure will remain in effect until March 31, 2027, though the government may adjust the duration based on socio-economic developments and energy security.

The tax cut led to immediate retail price drops of more than VND 1,800 per liter. Specifically, the Ministry of Industry and Trade reported that E5 RON 92 fell by VND 1,804 and E10 RON 95-III dropped by VND 1,575. This action follows a similar temporary reduction to zero percent implemented between March and June 2026 to stabilize the domestic market.

To further support economic activity and achieve an annual growth target of over 10 percent, the government simultaneously reduced the average retail electricity price by 2 percent to 2,159.9 dong per kilowatt-hour. Additionally, the environmental protection tax on gasoline remains at zero, and fuel products are exempt from value-added tax declaration and payment through the end of 2026. The Ministry of Finance is designated to receive proposed tax adjustments from the Ministry of Industry and Trade for future government submission.