Vietnam considering cutting gasoline tax, electricity prices

HANOI – Vietnam is considering cutting its special consumption tax on all gasoline grades to zero from November and may reduce retail electricity prices to help households and businesses, the government said.Vietnam is facing upward pressure on inflation and risks missing the 2026 economic growth target of at least 10%.The proposed special consumption tax cut would apply from Nov 1 through to March 31, 2027, the government said late on Oct 27.Vietnam is targeting inflation at 4.5% in 2026. Annual inflation was 5.08%, in September and ​4.89% in August, according to official data.Deputy Prime Minister Nguyen Van Thang on Oct 27 told the finance ministry to review the legal basis, feasibility and impact of reducing the special consumption tax on gasoline to zero, the government said.The tax on gasoline currently ranges from 7% to 10%.Thang told state utility EVN to recalculate its costs and maximise savings to allow for a a cut in the average retail electricity tariff.Vietnam’s economy grew 9.95% in the third quarter and fourth quarter growth must be higher than 12% to meet the 10% annual target. REUTERS