Proposal for Continuing the Reduction of Environmental Protection Tax on Gasoline, Diesel, and Lubricants in 2025

Amidst global and domestic economic challenges, the Draft Resolution on the Environmental Protection Tax rates for gasoline, oil, and lubricants in 2025 (“Draft“) is currently under consideration by the National Assembly. The Draft aims to alleviate difficulties, support citizens and businesses, and promote production, business activities, and economic development.

According to the Draft, gasoline (excluding ethanol), jet fuel, diesel, kerosene, fuel oil, lubricating oil, and lubricating grease are among the items subject to a reduction in the environmental protection tax. If the Draft is approved, the environmental protection tax rates currently applied to gasoline, oil, and lubricants in 2024 will remain in effect in 2025. Specifically, the proposed tax rates for these products will be set at 50% of the rates prior to the implementation of the Government’s support policies.

If the Draft is approved, the tax reduction will not only contribute to stimulating production and business activities but also help control inflation and stabilize the fuel market. In addition, the reduction in environmental protection tax on gasoline, oil, and lubricants will lower fuel costs for production and transportation, thereby reducing business expenses and supporting production and business operations.