The Ministry of Finance is collecting opinions on a draft decree amending and supplementing a number of articles of Decree 140 of the Government on registration fees.
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.
Vietnam has the opportunity to manufacture electric cars more easily than other countries with already well-established auto industries because Vietnam has no auto industry that would need to to sacrificed, experts have said.
On March 24, Vinfast made headlines after releasing its statement about receiving orders for its first electric car model VF e34 for VND690 million (about $32,000), to be delivered in the third quarter of 2021.