Vietnam cuts fuel taxes to stabilize energy market
The tax cuts, seen as an urgent and effective step, came as tensions in the Strait of Hormuz, described as the world’s largest energy chokepoint, have disrupted global oil flows and driven up prices, threatening Vietnam’s fuel supply.
The cuts are expected to ease the burden on households and help firms sustain production and trade, even as it trims state budget revenue by an average of about VND7.2 trillion (US$276.9 million) per month.
Distributors and importers will not need to declare or pay VAT on these fuels, though other uncovered tax rules will remain in force under existing laws.
The government must report any adjustments to fuel tax rates to the National Assembly by March 30.
The decision followed a government’s resolution issued on March 26, authorizing the Prime Minister to apply tax reductions on petrol, diesel and jet fuel when required to serve national interests.
Vietnam News Agency – March 27, 2026