Vietnam: Finance Ministry proposes 50% cut in registration fee for electric cars

• Aug 11, 2021

The Ministry of Finance has proposed that the registration fee for electric cars for the first time should be equivalent to 50% of that for petrol-fueled and diesel-fueled cars with the same number of seats. The second registration fee will be equal to that for petrol and diesel cars with the same number of seats, at 2%.

Currently, the registration fee for passenger cars with nine seats or less for the first time in Ho Chi Minh City and Hanoi is 15%, and 10% for the remaining provinces and cities.

In its submission to the Government, the Ministry of Finance proposed that the first registration fee for electric cars should be 5-7.5%. The reduction of the registration fee for electric cars will help encourage people to use this product.

According to the Finance Ministry’s calculations, for petrol and diesel cars with the selling price of VND600 million, the first registration fee is 60-90 VND. When the registration fee for electric vehicles is halved compared to petrol and diesel cars, the registration fee will be VND 30-45 million.

Many countries in the world are prioritizing the development and use of battery-powered vehicles to reduce environmental pollution. In 2020, battery-powered electric cars accounted for two-thirds of newly registered electric cars.

To encourage the production and use of electric cars, some countries have exempted tax or registration fees, such as the Netherlands, Spain, Greece and others.

In Vietnam, people’s demand for personal transport is very high. The rapid increase in the number of vehicles has led to high emissions of environmental pollution. The development of electric cars will be appropriate, especially in large cities with a dense population.

L. Bang

Source: https://vietnamnet.vn/en/business/finance-ministry-proposes-50-cut-in-registration-fee-for-electric-cars-764876.html