Proposal to extend the registration fee exemption policy
According to the draft Decree amending and supplementing Decree No. 10/2022/ND-CP, the Ministry of Finance proposes to continue to exempt registration fees for battery-powered electric vehicles until the end of 2030 to encourage people to switch to environmentally friendly vehicles.
Previously, many preferential policies were issued, including adjusting the special consumption tax rate according to Law No. 03/2022/QH15. According to the roadmap, the tax rate on battery-powered electric cars is currently only at 1%-3%, much lower than cars using fossil fuels (10%-150%). The actual implementation of the 2022-2025 period shows clear effectiveness. The number of electric cars under 24 seats has increased sharply, from 7,663 vehicles in 2022 to 179,316 vehicles in 2025. Along with that, budget revenue from this group of vehicles has also increased from more than 213 billion VND to more than 2,371 billion VND. This reflects the ongoing trend of consumption shift.
The Ministry of Finance also proposed extending the preferential consumption tax rate until the end of 2030. Specifically, cars under 9 seats continue to apply a rate of 3%, cars from 10 to under 16 seats are 2%, and cars from 16 to under 24 seats are 1%. After 2030, these tax rates will increase again according to the roadmap.
According to assessments, maintaining incentives until 2030 will continue to reduce ownership costs, thereby orienting consumption to shift to electric vehicles. The Ministry of Industry and Trade believes that if the policy is extended, the number of electric vehicles, especially in the under 9-seater segment, will increase rapidly in the coming years.
Message about commitment to green transformation
Not stopping at the economic aspect, the proposal to exempt registration fees also carries a strong message about sustainable development orientation. Encouraging electric vehicles is in line with Vietnam's commitment at the COP26 Conference on the goal of net zero emissions by 2050.
According to the Ministry of Construction, developing vehicles using clean energy is one of the important solutions to reduce greenhouse gas emissions, protect the environment and promote green growth. Tax and fee incentive policies therefore play a role as a "lever" to promote this process.
Dr. Ta Dinh Hoa (Academy of Finance) said that exempting registration fees for electric vehicles is not just simple financial support. Accepting to reduce budget revenue in the short term shows that the Government is prioritizing the long term for the environment. This is a clear message that Vietnam is not trading off the environment for economic growth.
Looking internationally, this trend is also taking place strongly. Singapore aims to eliminate fossil fuel vehicles by 2040, while strongly supporting electric vehicles. China implements direct subsidies for buyers and requires the proportion of new energy vehicles in sales. In the European Union, many countries exempt or reduce value-added tax, even free registration and infrastructure usage fees for electric vehicles.
From the people's perspective, many opinions expressed support. Mr. Nguyen Van Hung - Dong Ngac ward, Hanoi - said that he is considering buying an electric car, if it continues to be exempt from registration fees, it will help save significant initial costs. Meanwhile, Ms. Tran Thi Hai - Cau Giay ward, Hanoi - said that the long-term policy until 2030 helps people feel more secure when deciding to switch vehicles.
However, experts also believe that, for policies to be maximally effective, it is necessary to synchronize with the development of charging station infrastructure, clean electricity sources and accompanying service ecosystems. These are key factors that determine the speed of electric vehicle popularization in practice.
