New Special Consumption Tax Rates for Pickup Trucks Effective January 1, 2026

The most notable aspect of this document is the new tax roadmap for pickup trucks, with tax rates ranging from 35% to 150%, depending on the engine’s cylinder capacity.

According to the Decree, the list of vehicles subject to Special Consumption Tax (SCT) has been expanded and clarified to include vehicles with engines seating fewer than 24 people. Directly affected categories include general passenger cars, four-wheeled vehicles with engines, pickup trucks (both passenger and dual-cabin cargo variants), and cargo vans with two or more rows of seats and a fixed partition between the passenger and cargo areas. The imposition of higher taxes on these versatile vehicles reflects the regulatory body’s aim to manage consumption of vehicles that may strain urban transportation infrastructure.

Under the new Special Consumption Tax regulations, passenger pickup trucks will face tax rates ranging from 30% to 150%, based on engine cylinder capacity. Dual-cabin cargo pickup trucks, however, will be taxed at a lower rate, from 15% to 25%, also determined by cylinder capacity. According to the announced roadmap, taxes on dual-cabin cargo pickup trucks will continue to rise, reaching approximately 24% to 34% by 2029.

Tax policies for battery-powered pickup trucks show clear differentiation. Passenger pickup trucks using batteries will be taxed at 3% from January 1, 2026, increasing to 11% from March 1, 2027. Dual-cabin cargo pickup trucks powered by batteries will be taxed at 2% and 7%, respectively, during the same periods.

Passenger pickup trucks using non-battery electric powertrains will be taxed at 15%, while dual-cabin cargo pickup trucks in this category will face a 10% tax rate.

With the new tax framework, starting in 2026, the prices of pickup trucks in Vietnam are expected to rise significantly, particularly for passenger pickup trucks with internal combustion engines. This shift is likely to exert considerable pressure on purchasing power, directly impacting sales across the entire pickup truck segment in the coming years.

Conversely, Decree 360 also outlines specific vehicle categories exempt from Special Consumption Tax to support social welfare and specialized purposes. Exempt vehicles include ambulances, prisoner transport vehicles, hearses, and vehicles designed with both seating and standing areas accommodating 24 or more people. Additionally, vehicles operating within limited internal areas, such as amusement parks, sports facilities, historical sites, hospitals, and schools, are also exempt from this tax.

For vehicles serving national security and defense, the Decree grants the Ministry of Public Security and the Ministry of National Defense the authority to specify exemptions. The Ministry of Construction will collaborate with relevant agencies to provide guidance on determining other specialized vehicles eligible for tax exemption as needed. The clear distinction between multipurpose personal vehicles and those serving specific needs in the new Decree is expected to foster a transparent business environment and promote the automotive market’s development in line with state planning objectives.

TH (Tuoitrethudo)