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Vietnam extends fuel tax suspension following US-Iran talks collapse
The National Assembly of Vietnam said fuel taxes would remain suspended until June 30. The tax suspension had been place since late March to mitigate inflation
- PUBLISHED: Mon 13 Apr 2026, 7:28 PM
[Editor's Note: Follow Khaleej Times live blog for the latest regional developments with the US-Israel-Iran ceasefire now in effect.]
Vietnam’s parliament announced the extension of the country’s suspension of fuel taxes in an attempt to stabilize its domestic market amid the ongoing hostilities in the Middle East.
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The National Assembly of Vietnam said fuel taxes would remain suspended until June 30. The tax suspension had been place since late March.
Vietnam’s Ministry of Industry and Trade said the government will not collect the 7.4 per cent value added tax, the 6 per cent environmental protection tax, and the 6.7 per cent special consumption tax on fuel products until next month.
The measure is an attempt to check inflation and support socio-economic growth this year amid rising global energy prices due to Middle East tensions, state media outlets said, so far costing state revenue by 7.2 trillion dong (Dh1 billion)
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Vietnam has suffered surges in fuel prices by as much as 17 per cent in petrol and 70 per cent in diesel since the U.S.-Israeli war on Iran began at the end of February.
Consumer prices rose by 4.65 per cent in March due to increased transport costs, threatening efforts to put inflation at 4.5 per cent or under in 2026.
The declaration came as US vice president JD Vance announced the collapse of the Pakistan-brokered attempt for an agreement with Iran that may lead to an end to the war.