Vietnam Extends Special Consumption Tax Incentives for Electric Vehicles
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Golden Ten Data reported on April 25 that the National Assembly of Vietnam passed a law on April 24 amending and supplementing certain provisions of the "Special Consumption Tax Law", deciding to extend the special consumption tax preferential policy for electric vehicles with fewer than 24 seats until the end of 2030. The tax rate for electric vehicles will continue to enjoy the lowest rate among all vehicle categories. In March 2022, Vietnam reduced the special consumption tax for electric vehicles to 1%–3%, originally set to expire on March 1, 2027; for fuel-powered vehicles, the special consumption tax rate is 10%–150%. The Vietnamese transport authorities stated that electric vehicles "already enjoy the lowest tax rate in the automotive industry." Vietnam’s Finance Minister Nguyen Van Tuyn reported to the National Assembly that extending the preferential period helps stabilize consumer expectations and also benefits companies in formulating medium- and long-term investment plans.
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