Vietnam is considering cutting its special consumption tax on all petrol grades to zero from 1 November, with a possible reduction in retail electricity prices, as it tries to contain inflation and protect its growth target, the government said.
Vietnam’s government has proposed that the special consumption tax on all petrol grades be reduced to zero for the period from 1 November to 31 March 2027, it announced on 27 October 2026. Households and businesses could also benefit from lower retail electricity prices.
The Deputy Prime Minister instructed the Ministry of Finance on 27 October 2026 to examine the legal basis, feasibility and impact of the proposed cut. The special consumption tax on petrol currently ranges from 7% to 10%.
Thang also directed state utility EVN to recalculate its costs so that the average retail electricity tariff could be lowered.
The measures come as Vietnam faces upward pressure on prices. Official data show annual inflation reached 5.08% in September, up from 4.89 % in August, both above the government’s 2026 inflation target of 4.5%.
The authorities are also concerned about the 2026 economic growth target of at least 10 %. The economy expanded by 9.95% in the third quarter. To reach the annual goal, growth in the fourth quarter would need to exceed 12%.
The government has not yet confirmed whether the proposed tax cut or the electricity tariff reduction will go ahead, pending the Ministry of Finance’s review.
