50% reduction in environmental protection tax on gasoline, oil, and grease until the end of 2026

On the morning of October 17, the National Assembly Standing Committee voted to pass a Resolution on environmental protection tax rates for gasoline, oil, and lubricants in 2026.

According to the Resolution, the National Assembly Standing Committee agreed to reduce 50% of environmental protection tax on gasoline, oil, and grease in 2026. Specifically, the environmental protection tax rate for gasoline (except ethanol) is 2,000 VND/liter; diesel, fuel oil, and lubricants is 1,000 VND/liter; and grease is 1,000 VND/kg. Particularly, kerosene will be subject to an environmental protection tax of 600 VND/liter in 2026. The tax rate for aviation fuel is 1,500 liters.

From January 1, 2027, the environmental protection tax rate on gasoline, oil, and grease will be implemented according to the provisions of Resolution No. 579/2018/UBTVQH14.

Previously, on behalf of the Government presenting the draft Resolution, Deputy Minister of Finance Nguyen Duc Chi said that environmental protection tax is an indirect tax, collected on products and goods that have a negative impact on the environment when used. Therefore, the cost of environmental protection tax is transferred directly to the selling price of products and goods subject to tax and consumers are the last ones to pay environmental protection tax.

Therefore, reducing environmental protection tax on gasoline, oil, and grease contributes to reducing domestic retail prices of gasoline, thereby directly reducing people's costs in gasoline consumption and reducing indirect costs related to the consumption of other products and goods, then households and individuals will have more financial resources to spend. At the same time, it will contribute to reducing production costs, lowering product prices, helping businesses increase their ability to recover and expand production and business.

“Environmental protection tax on gasoline, oil, and grease is a factor that constitutes the base price of domestic gasoline. Adjusting the environmental protection tax on this item will directly affect the retail price of gasoline in the country, which will also affect the consumer price index (CPI) and is therefore considered a tool to control inflation,” Mr. Chi added.

Giảm 50% thuế bảo vệ môi trường đối với xăng, dầu, mỡ nhờn đến hết năm 2026 - Ảnh 1. — Deputy Minister of Finance Nguyen Duc Chi

According to the Deputy Minister of Finance, in order to contribute to creating a solid foundation to achieve double-digit growth rates from 2026 and minimize disadvantages that may negatively affect the implementation of socio -economic development goals, it is necessary to have many supportive policy solutions to create momentum to promote socio-economic development, enhance competitiveness and adaptability in the context of rapid and complex international changes.

In particular, reducing environmental protection tax on gasoline, oil, and grease in 2026 as implemented in 2025 is a necessary solution.

Regarding the impact of tax reduction on budget revenue, the Deputy Minister of Finance said that with the expected consumption output of gasoline, oil, and lubricants in 2026 being equivalent to the expected consumption output in 2025, it is estimated that budget revenue will decrease by more than VND 44,000 billion.

Source: https://vtv.vn/giam-50-thue-bao-ve-moi-truong-doi-voi-xang-dau-mo-nhon-den-het-nam-2026-100251017112101834.htm