Auto association wants tax cuts for hybrid vehicles
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The Vietnam Automobile Manufacturers Association has sought cuts in excise tax and registration fees for hybrid electric vehicles.
This would stimulate demand and encourage businesses to invest in power generation and charging systems, it said.
Incentives for electric and hybrid vehicles should gradually decrease, and there would be no need for them by 2050 once these vehicles establish themselves in the market, it said.
VAMA also called on the Government to soon finalize the development strategy and incentives for the auto industry to help achieve Vietnam’s goal of carbon neutrality by 2050.
Earlier this year the National Assembly cut excise tax for electric vehicles to 3% from 15% for five years and to 11% from 2027.
But hybrid cars are not eligible for the incentives, meaning buyers have to pay excise tax of 15% and registration fee of 10-12%.
Questions & Answers
Q.What specific tax reductions is VAMA proposing for hybrid electric vehicles?
What specific tax reductions is VAMA proposing for hybrid electric vehicles?
VAMA has requested cuts in excise tax and registration fees for hybrid electric vehicles. This measure aims to boost demand for these vehicles and encourage investment in necessary infrastructure, such as charging systems.
Q.Are there currently any tax incentives for hybrid vehicles in Vietnam?
Are there currently any tax incentives for hybrid vehicles in Vietnam?
No, hybrid vehicles are not currently eligible for incentives. Buyers must pay an excise tax of 15% and a registration fee of 10-12%, unlike fully electric vehicles which received a tax cut earlier this year.
Q.What is VAMA's long-term view on government incentives for electric and hybrid vehicles?
What is VAMA's long-term view on government incentives for electric and hybrid vehicles?
VAMA believes that incentives for electric and hybrid vehicles should gradually decrease over time. The association anticipates that by 2050, these vehicles will be well-established in the market, eliminating the need for further government support.
Q.How do the current tax rates for hybrid vehicles compare to fully electric vehicles?
How do the current tax rates for hybrid vehicles compare to fully electric vehicles?
Hybrid vehicles face a 15% excise tax and 10-12% registration fee. In contrast, the National Assembly reduced the excise tax for electric vehicles to 3% for five years, increasing to 11% from 2027.
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