The National Assembly (NA) Standing Committee has agreed to extend  environmental protection tax cut for petrol, oil, and lubricants in 2025 to support the economy post pandemic, the Vietnam News Agency has reported.

The tax reduction  was set to expire on January 1, 2025.

Under a resolution issued recently by the committee, the tax cut is to continue for another year until December 31, 2025.

Previously, environmental tax rates in Vietnam were set at VND4,000 ($0.16) per liter for petrol (excluding ethanol), VND3,000 per liter for jet fuel, VND2,000 per liter for diesel, VND1,000 per liter for kerosene, VND2,000 per liter for mazut oil, VND2,000 per liter for lubricating oil and VND2,000 per kg for lubricating grease.

The Government earlier proposed that the tax be reduced for another year at VND2,000 per liter for petrol (excluding ethanol), VND600 per liter for kerosene, VND1,000 per liter for jet fuel, diesel, mazut oil, and lubricating oil and grease to help control inflation, ensure macro-economic stability, and ease difficulties for businesses and the public.