The Ministry of Finance proposes to extend the exemption period of 100% of the registration fee for electric cars to 2027, instead of the current deadline of February this year.
From 2022, electric cars are offered for registration fee within 5 years, including 100% exemption in the first 3 years and a 50% reduction for the next 2 years. That is, by February 28, electric car buyers will no longer be exempted and have to pay 50% of this fee. Meanwhile, Hybrid cars have no similar incentives.
At the draft, the Ministry of Finance proposes to extend the time for exemption from the entire registration fee for another 2 years with battery -powered tram, until February 28, 2027.
This extended time is 1 year shorter than the previous proposal of VinFast – the best -selling electric automobile company in Vietnam. The company recommends that the Prime Minister extends the free time for the registration fee for an additional 3 years, that is February in February 2028 and the reduction of this fee is reduced in the next 3 years.
Electric cars of a domestic car company. Image: Luong Dung
Explaining the proposal to extend the policy time limit, the Ministry of Finance said that the development of electric vehicles significantly contributed to the reduction of greenhouse gas emissions. According to preliminary calculations, electric vehicles in Vietnam contribute 0.5 million tons of CO2 equivalent each year. This reduction level may increase in the next time when electric cars are expected to grow 25-30% per year.
Besides, electric cars operate smoothly, almost no noise, while inner engine vehicles often have loud engine noise, affecting the living environment. “Continuing to collect 0% registration fee with battery -powered electric cars will help develop the market, create jobs, increase income for labor and promote economic growth,” the Ministry of Finance stated.
Exemption of an additional 2 -year registration fee for electric vehicles, according to authorities, can reduce the budget to reduce about VND 4,800 billion per year.
Over the past three years, the number of budget revenues when free registration for electric cars is nearly VND 8,420 billion. Because, the number of electric cars running rapidly, from each month on average, over 400 registration fees in 2022 to more than 6,600 vehicles in 2024.
Registration fee is one of the many owners’ expenses to be completed to roll a model. This fee for electric cars is one of the ways to stimulate people to prioritize the use of environmentally friendly cars.
Currently, the child registration fee is calculated according to the percentage of each type and each locality when registering. For example, the first fee for cars in Hanoi, Quang Ninh and Hai Phong is 12% of the car value; Ho Chi Minh City 10%, Ha Tinh 11%… Particularly pickup trucks, registration fee equal to 60%of the first fee for children. From the second fee payment, the revenue is 2% and uniformly applied nationwide.
Along with solutions for exemption and reduction of registration fees, the Ministry of Industry and Trade aims to 2030, the ratio of electric cars, hybrid, green cars (using solar energy, biofuel or other green materials) accounts for about 18 -22% of total market sales, equivalent to 180,000-242,000 units.