On the morning of October 17, all members of the National Assembly Standing Committee present unanimously approved a resolution on the 2026 environmental protection tax rates for gasoline, oil, and lubricants.

The resolution sets the environmental protection tax rates for gasoline, oil, and lubricants in 2026 at the same levels as those applied in 2025 under Resolution No. 60/2024 of the National Assembly Standing Committee-excluding jet fuel.

The environmental protection tax rates effective from January 1 to December 31, 2026, are as follows:

The resolution further stipulates that from January 1, 2027 onward, environmental protection tax rates for gasoline, oil, and lubricants will revert to the levels prescribed in Resolution No. 579/2018 dated September 26, 2018.

Jet fuel tax reduction continues due to industry recovery

Prior to the resolution’s approval, Deputy Minister of Finance Nguyen Duc Chi presented a report evaluating the impact of previous policies.

He noted that reducing the environmental protection tax on jet fuel in recent years has produced positive effects, easing operational costs for the aviation sector and helping airlines recover from the severe disruptions caused by the COVID-19 pandemic and global economic slowdown.

Beyond the tax break on jet fuel, the aviation industry has also benefited from broader tax and fee relief measures, such as a 2% VAT rate reduction and extended deadlines for tax payments.

As Vietnam's aviation market has largely rebounded, Deputy Minister Chi explained that the proposed 1,500 VND/liter tax rate for jet fuel would continue supporting airline businesses while ensuring fairness across other transportation sectors, including rail and road.

This rate represents a 50% reduction compared to the tax level outlined in Resolution No. 579/2018 and aligns with similar reductions for gasoline, diesel, mazut, lubricating oil, and grease.

Fiscal impact and budget recommendations

The Ministry of Finance estimates that if fuel consumption in 2026 matches 2025 levels, implementing the proposed tax rates would reduce environmental protection tax revenue by approximately 41.39 trillion VND (roughly 1.7 billion USD) compared to revenue under Resolution No. 579/2018.

Total state budget revenue, factoring in the VAT reduction, is projected to decline by about 44.7 trillion VND (1.83 billion USD).

Phan Van Mai, Chairman of the Economic and Financial Committee, reported that most committee members supported the proposed tax levels.

However, the committee also recommended that the government implement stronger tax collection measures to prevent evasion, transfer pricing, and fraud. At the same time, it called for tighter control over public spending to maintain budget stability.

Tran Thuong