The Ministry of Finance is seeking opinions on the Draft Decree amending and supplementing a number of articles of Decree 10 of 2022 on registration fees.
Compared to current regulations, the draft proposes to extend the time limit for paying the first registration fee with a fee of 0% for battery-powered electric cars until February 28, 2027, an extension of 2 more years.
Commenting on the above proposal, the Vietnam Federation of Commerce and Industry (VCCI) said that it is "in line with policies on green transformation and environmental pollution reduction".
Analyzing this opinion more clearly, VCCI said that battery-powered electric cars do not use fossil materials, do not emit CO2 gas, do not cause air pollution, contribute to reducing greenhouse effect, and protecting the environment.
The extension of the 0% fee for the first registration fee for battery-powered electric cars will encourage consumers to use battery-powered electric cars, thereby changing the consumption orientation and contributing to converting vehicles to greener.
This policy also promotes and creates conditions for electric car manufacturing and assembly enterprises to invest in expanding the market and increasing production scale - VCCI stated.
According to VCCI, the regulation of this registration fee collection rate is also in line with policies to promote green transformation, reduce environmental pollution, and aim for green energy conversion.
In addition, VCCI assessed that the proposal to extend the payment period for the first registration fee with a fee of 0% for battery-powered electric cars until February 28, 2027, which is still in line with international experience.
In the world, some countries have issued preferential policies, supported the development of electric vehicles and brought outstanding results.
For example, China has many policies to reduce and exempt taxes on electric vehicle purchases; exempt corporate income tax for 5-8 years for pure electric vehicle production investment projects; reduce special consumption tax from 8% to 2%...
Or in Thailand, there is a policy of reducing import tax by up to 40%. Similarly, policies to exempt or reduce value-added tax on electric vehicles in the EU and Ireland include: 25% VAT exemption for car purchases in the period of 1996-2021; from 2023, a 25% VAT will be applied for car prices exceeding 500,000 Krones; exemption from other fees related to electric vehicles; Netherlands exemption from registration tax, reduction of electric vehicle ownership tax, tax incentives for electric vehicle manufacturing companies...
Preferential policies, tax exemptions and reductions related to electric vehicles have strongly promoted people in countries around the world to use electric vehicles, contributing to reducing environmental pollution and sustainable development - VCCI assessed.
However, reducing registration fees for electric vehicles will reduce State budget revenue. However, looking at the perspective of the positive, long-term impacts of using electric vehicles on the socio-economic situation, it is very large.
Air pollution and environmental pollution have a great impact on people's health, creating a health burden for society.
In a research report by the National Economics University, air pollution in Vietnam not only has a negative impact on people's health but also causes economic losses of up to tens of billions of USD, equivalent to about 5% of the country's GDP.
Promoting the use of electric cars will contribute to reducing air pollution and environmental pollution, thereby reducing the health burden on society.
