According to Decree No. 10/2022, electric cars and battery-powered electric cars will receive preferential registration fees for 5 years from March 1, 2022, including 100% exemption for the first 3 years and 50% reduction for the next 2 years. This means that after February 28, 2025, electric car buyers will have to pay 50% of this fee.

Therefore, in the newly announced draft decree related to registration fees, the Ministry of Finance proposed extending the exemption of all registration fees for battery-powered electric vehicles by 2 more years, until February 28, 2027.

Previously, VinFast Manufacturing and Trading Joint Stock Company sent a dispatch to the Prime Minister proposing to extend the registration fee exemption period for another 3 years, from March 1, 2025 to February 28, 2028, and apply a 50% reduction for the next 3 years.

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Registration fees for electric cars may be exempted for another 2 years. Photo: The Dinh

Thus, the extension period of 100% exemption of registration fee for electric cars in the proposal of the Ministry of Finance is 1 year shorter than the previous proposal of VinFast.

Registration fees are one of many expenses that owners must pay to get a car on the road. Discounting this fee for electric cars is one way to encourage people to prioritize using environmentally friendly cars.

Stating the basis for the above proposal, the Ministry of Finance said that continuing to apply a 0% registration fee for battery-powered electric cars contributes to the development of the market, the electric car industry and supporting industries, creating jobs, increasing income for workers, ensuring social security, and having a spillover effect to other economic sectors.

According to the Ministry of Finance, the development of electric vehicles contributes significantly to reducing greenhouse gas emissions. This reduction in emissions may increase in the future as electric cars are forecast to grow 25-30% per year.

Furthermore, battery-powered electric cars operate smoothly, making almost no noise, while internal combustion engine cars often have loud engine noise, affecting the living environment.

However, exempting registration fees for two more years for electric vehicles could reduce the budget revenue by about VND4,800 billion per year.

Official 50% reduction in registration fees for domestically produced cars from September 1 The upcoming 50% reduction in registration fees for domestically produced and assembled cars will be applied for 3 months, from September 1 to November 30, 2024.