Finance ministry proposes extension of 50% environmental tax cut on fuels

The Ministry of Finance has proposed to extend 50% reduction of environmental protection tax on petrol, oil, and lubricants by the end of 2026, according to a report from the Government News.

The 50% reduction of environmental protection tax  on petrol, oil, and lubricants, has been applied from April 2022 until December 31, 2025.

If the proposal is approved by the National Assembly Standing Committee, the environmental protection tax shall be VND2,000 ($7 cent) per liter for petrol (excluding ethanol); and VND1,000 per liter for jet fuel, diesel, mazut oil, and lubricating oil and grease.

Introduced under the Environmental Protection Tax Law (2010), the tax is one of the key tools to promote sustainable development, and reduce pollution, in line with international commitments on climate change.