By Anh Minih June 14, 2021 | 09:42 GMT + 7
Artistic illustration of an electric car from VinFast, a unit of the conglomerate Vingroup. Photo by VinFast.
Two ministries have advocated tax incentives for electric vehicles that are compatible with the government’s goal of reducing emissions.
Deputy Minister of Industry and Commerce Do Thang Hai said his ministry could consider abolishing the special excise tax and electric vehicle registration fees for five years.
This will encourage the purchase of environmentally friendly vehicles and reduce emissions on behalf of the government.
The Ministry of Transport has also spoken out in favor of incentives.
The special excise tax for nine-seat electric cars is now 15 percent after being reduced by 10 percentage points in July 2016.
The registration fees are 10-12 percent depending on the location.
Last month, Vietnam’s largest conglomerate Vingroup called for tax and fee-related incentives as it prepares to sell electric vehicles this year.
The Treasury Department has not yet said whether it will support the tax cuts, but Deputy Finance Minister Vu Thi Mai said the incentives require the National Assembly to change the law.
The ministry is soliciting statements from companies and plans to submit them and Vingroup’s proposal to the government in October.
Some countries have incentives for electric vehicles. Buyers in South Korea receive a $ 2,000 discount on income tax and a $ 1,400 discount on car purchase tax.
China has abolished consumption tax and cut registration fees by half.
Thailand and Indonesia have multiple incentives to encourage electric vehicle purchases for five years.
The Vietnamese government has concerns about the power source for electric vehicles.
The Treasury Department has indicated that high-carbon thermal energy accounts for almost half of the country’s total electricity production.
So far, renewable energies have only made up 4.3 percent.