HANOI, March 27 (Xinhua) -- Vietnam has cut the special consumption tax rate on fuel to 0 percent from Friday until April 15, the Vietnam News Agency reported.
The reduction was made under a decision signed by Prime Minister Pham Minh Chinh on Thursday.
The environmental protection tax on gasoline, excluding ethanol, diesel and aviation fuel, has also been set at 0 Vietnamese dong per liter.
Gasoline, diesel and aviation fuel are exempt from value-added tax (VAT) declaration and payment, while input VAT remains deductible.
The move is seen as an urgent and effective measure to help stabilize fuel prices and ensure national energy security amid escalating tensions in the Strait of Hormuz, the report said.
The tax cuts are expected to reduce state budget revenues by about 7.2 trillion Vietnamese dong (around 287.8 million U.S. dollars) per month, but will provide financial relief to consumers and support production and business activities, the state-owned media reported. ■