2026: Continue to apply the reduced environmental protection tax rate on gasoline, oil, and grease

The reduced environmental protection tax (EPT) rate for gasoline, oil, and grease is proposed to continue to be applied in 2026, before returning to the standard tax rate according to Resolution No. 579/2018/UBTVQH14 from 2027.

The application of environmental protection tax as drafted is assessed to contribute to price stabilization, especially domestic retail gasoline prices.

The Draft Resolution of the National Assembly Standing Committee adjusting environmental protection tax (EPT) on gasoline, oil and grease in Vietnam (being appraised by the Ministry of Justice ) stipulates that the reduced EPT rate will continue to be applied to gasoline, oil and grease in 2026, before returning to the standard tax rate according to Resolution No. 579/2018/UBTVQH14 from 2027.

Specifically, from January 1, 2026 to December 31, 2026, the proposed environmental protection tax rates are as follows:

◦ Gasoline, excluding ethanol: VND 2,000/liter (lower than the VND 4,000/liter stipulated in Resolution 579/2018/UBTVQH14).

◦ Aviation fuel: 1,500 VND/liter (lower than 3,000 VND/liter).

◦ Diesel oil, fuel oil, lubricants: VND 1,000/liter (or kg for grease) (lower than VND 2,000/liter/kg).

◦ Kerosene: 600 VND/liter (lower than 1,000 VND/liter).

From January 1, 2027 onwards, the environmental protection tax on gasoline, oil, and grease will return to the regulations in Resolution No. 579/2018/UBTVQH14. This means that the tax rate will increase significantly in 2027 compared to 2026.

The application of environmental protection tax as drafted is assessed to contribute to stabilizing prices, especially domestic retail prices of gasoline and oil; contributing to stabilizing the macro- economy , especially in the context of the world economy still having many fluctuations and difficulties.

However, the continued reduction of environmental protection tax will lead to a decrease in state budget revenue. It is expected that in 2026, budget revenue will decrease by about VND 40,501 billion compared to the application of the tax rate according to Resolution 579/2018/UBTVQH14.

MR. PHUONG

Source: https://www.sggp.org.vn/nam-2026-tiep-tuc-ap-dung-muc-tax-bao-ve-moi-truong-da-giam-doi-voi-xang-dau-mo-nhon-post810408.html