Proposals to cut indirect taxes on fuels as inflation ticks up
Vietnam’s finance ministry has put forward two alternative measures to cut indirect taxes on fuel. These are:
- Cut VAT 20% and Special Consumption Tax by 50%; or
- Cut VAT and Special Consumption Tax by 50%
Whilst Vietnamese inflation is still below 5%, the measures could cut 0.1% to 0.15% off the headline rate.
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Either measure would be in place by 1 November 2022 for six months.
European cuts on VAT on fuel and foods have been passed or are under review.