HANOI — Vietnam is considering cutting its special consumption tax on all gasoline grades to zero from next month and may reduce retail electricity prices to help households and businesses, the government said.

Vietnam is facing upward pressure on inflation and risks missing this year's economic growth target of at least 10 per cent

The proposed special consumption tax cut would apply from Nov 1 through to March 31 next year, the government said late on Tuesday (Oct 27).

Vietnam is targeting inflation at 4.5 per cent this year. Annual inflation was 5.08 per cent, in September and ​4.89 per cent in August, according to official data

Deputy Prime Minister Nguyen Van Thang on Tuesday 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 seven per cent to 10 per cent

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 per cent in the third quarter and fourth quarter growth must be higher than 12 per cent to meet the 10 per cent annual target

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