Vietnam cut excise duty on battery electric car
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The National Assembly Tuesday voted to cut excise on battery-run electric cars to 3 percent for a period of five years.
With effect from March 1, the tax on various types of battery electric vehicles (BEVs) will be reduced by 3-12 percentage points from current levels and be valid until Feb. 28, 2027.
In 2027, they will revert to current levels of 5-15 percent.
The National Assembly’s Standing Committee said the introduction of incentives to attract investors earlier than other Southeast Asian countries would create great opportunities for Vietnamese companies to produce BEVs for both domestic and foreign markets.
A number of companies are preparing to begin the production of BEVs.
“Electric cars are both environment-friendly and suitable for practical use,” Vu Hong Thanh, chairman of the House Economic Committee, said.
Automaker VinFast has tied up with a Chinese company to research and manufacture electric car batteries as part of its vision to become a global brand.
Questions & Answers
Q.What is the new excise duty rate for battery electric cars in Vietnam?
What is the new excise duty rate for battery electric cars in Vietnam?
The new excise duty rate for battery-run electric cars will be 3 percent for a period of five years, effective from March 1. This represents a reduction of 3-12 percentage points from previous levels.
Q.When will the reduced excise duty for BEVs expire?
When will the reduced excise duty for BEVs expire?
The reduced excise duty for battery electric vehicles will be valid until February 28, 2027. After this date, the tax rates will revert to their current levels of 5-15 percent.
Q.What is the stated aim behind cutting the excise duty on BEVs?
What is the stated aim behind cutting the excise duty on BEVs?
The National Assembly’s Standing Committee believes these incentives will attract investors earlier than other Southeast Asian countries. This is expected to create significant opportunities for Vietnamese companies to produce BEVs for both local and international markets.
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