Electric Cars May Be Exempt from Registration Fees for Another Two Years

According to Decree No. 10/2022/NĐ-CP, issued by the Government on January 15, 2022, regarding registration fees and taking effect from March 1, 2022, from March 1, 2025, the following shall be stipulated: For a period of three years from the effective date of this Decree, the registration fee for electric vehicles running on batteries shall be 0%. In the following two years, the registration fee shall be 50% of the fee for gasoline and diesel vehicles with the same number of seats. From the second payment onwards, the registration fee shall be 2%, and this rate shall be applied uniformly across the country.

Thus, the exemption of the registration fee for electric vehicles running on batteries will end on February 28, and from March 1, vehicle buyers will have to pay a registration fee equivalent to 50% of that for gasoline and diesel vehicles.

However, in the draft for feedback, the Ministry of Finance proposed extending the full registration fee exemption period for battery-operated electric vehicles by two years, until February 28, 2027.

This extension period is one year shorter than the previous proposal made by VinFast. The company had petitioned the Prime Minister to extend the registration fee exemption period by three years, until February 2028, and to apply a 50% reduction in the fee for the following three years.

Explaining this proposal, the Ministry of Finance stated that the development of electric vehicles has fundamentally contributed to improving air quality and protecting the environment. According to preliminary calculations, electric vehicles in Vietnam contribute 0.5 million tons of CO2 equivalent per year. This emission reduction can be expected to increase over time as electric vehicles are projected to grow by 25-30% annually.

Continuing the application of a 0% registration fee for electric vehicles running on batteries will contribute to the development of the market, the electric vehicle industry, and supporting industries, creating jobs, increasing income for workers, and promoting economic growth.

Regarding the impact of this policy on state budget revenue, the Ministry of Finance estimated a reduction in state budget revenue of VND 4,800 billion per year. Over the past three years, the reduction in state budget revenue due to registration fee exemptions for electric vehicles amounted to nearly VND 8,420 billion. The number of battery-operated electric vehicles in the market has been increasing, with an average of over 400 vehicles registered for the registration fee in 2022, rising to more than 6,600 vehicles in 2024.

TH (Tuoitrethudo)