The Government plans to extend tax exemptions on gasoline (excluding ethanol), diesel and aviation fuel until June 30 under a draft resolution.

Environmental protection tax on these fuels has been reduced to zero from March 26 to April 15 to help stabilize the domestic energy market, according to the Prime Ministerial Decision No. 482/QD-TTg.

In addition, gasoline, diesel and jet fuel are exempt from value-added tax (VAT) declaration and payment, although input VAT remains deductible. The excise tax rate on all types of gasoline has also been cut to zero percent.

The Ministry of Industry and Trade said the zero-tax policy has enabled businesses to diversify import sources beyond traditional markets such as South Korea and ASEAN, helping to secure domestic supply amid global disruptions linked to conflicts in the Middle East.

However, the ministry warned that risks persist, as supply remains unstable, import costs are elevated and global oil prices continue to face upward pressure. If the preferential import tax exemption policy ends, the risk of supply shortages may reoccur, while the cost of imports from preferential tax markets under trade agreements is also likely to increase. Therefore, the extension of the policy is needed to further support businesses.