The Vietnam Federation of Commerce and Industry (VCCI) has just sent a document to the Ministry of Finance with comments on the Draft Decree amending and supplementing a number of articles of Decree No. 10/2022/ND-CP of the Government on registration fees (draft).

Supporting the Ministry of Finance's proposal to extend the deadline for paying the first registration fee of 0% for battery-powered electric cars until February 28, 2027, VCCI explained that this proposal is consistent with policies on green transformation and minimizing environmental pollution.

According to VCCI, battery-powered electric cars do not use fossil fuels, do not emit CO2, do not pollute the air, contribute to reducing the greenhouse effect and protecting the environment.

Extending the 0% initial registration fee for battery-powered electric cars will encourage people to use them, thereby changing consumption trends and contributing to the transition of vehicles towards greener ones.

This policy also promotes and creates conditions for electric car manufacturing and assembly enterprises to invest in expanding the market and increasing production scale, VCCI emphasized.

electric car
VCCI supports the Ministry of Finance's proposal to extend the 100% registration fee exemption period. Photo: Vinfast

In addition, the regulation of this registration fee level is also consistent with policies to promote green transformation, reduce environmental pollution, including green energy transformation.

VCCI cited that some countries in the world have issued preferential policies to support the development of electric vehicles and achieved outstanding results.

Typically, China has many tax exemption and reduction policies for manufacturing enterprises and people buying electric vehicles; Thailand reduced special consumption tax from 8% to 2%; and reduced import tax by up to 40%.

Or policies to exempt or reduce value added tax for electric vehicles in the EU, Norway. The Netherlands also exempts registration tax, reduces electric vehicle ownership tax, and offers tax incentives for electric vehicle manufacturing companies...

VCCI assessed that extending the deadline for paying the first registration fee at 0% for battery-powered electric cars has a positive impact on socio-economic development, although it will reduce state budget revenue.

Because air pollution and environmental pollution have a huge impact on people's health, creating a medical burden for society. In a research report by the National Economics University, air pollution in Vietnam not only has a negative impact on people's health but also causes economic losses of up to tens of billions of USD, equivalent to about 5% of the country's GDP.

Therefore, promoting the use of electric cars will contribute to reducing air pollution and environmental pollution, thereby reducing the medical burden on society.

Proposal to exempt registration fees for electric cars for another 2 years The Ministry of Finance has proposed extending the 100% exemption from registration fees for electric cars until February 28, 2027, instead of the incentive expiring at the end of February this year.