MoF develops excise tax policy to promote electric vehicle production

VCN – The Ministry of Finance is considering adjusting excise tax rates for some environmentally friendly products in the revised Law on Excise Tax.
MoF proposes decree amendment to allow bond payment conversions MoF proposes decree amendment to allow bond payment conversions
MoF proposes extension to tax payment deadlines in 2023 MoF proposes extension to tax payment deadlines in 2023
MoF proposes support policies on taxes and fees in 2023 MoF proposes support policies on taxes and fees in 2023
MoF develops excise tax policy to promote electric vehicle production
The Ministry of Finance believes that it is necessary to have tax incentives to encourage the production of environmentally friendly cars.

The current Law on Excise Tax stipulates that "Car running on both gasoline and electricity or bioenergy, the proportion of gasoline that does not exceed 70% of the total energy used, will apply excise tax rate equal to 70% of the tax rate applicable to vehicles of the same type specified at Points 4a, 4b, 4c and 4d of the Tariff specified in this Article".

According to the MoF, the regulation aims to encourage consumers to use environmentally friendly vehicles, which are vehicles with two engines: a gasoline engine and an electric motor. Although under normal conditions, vehicles are mainly operated by electric motors and gasoline engines (when the battery runs out of electricity), the emissions to the environment are much lower than other cars. However, it is necessary to supplement regulations on the type of vehicle that is charged with a separate charging system.

According to the MoF, for environmentally friendly vehicles, in addition to cars running on gasoline and electricity or bioenergy, there are vehicles using natural gas. Therefore, it is necessary to provide tax incentives to encourage the production of these vehicles.

The Ministry also proposed to adjust the excise tax rate to remove shortcomings in reality. For example, according to the national technical regulation QCVN 41:2016/BGTVT on road symbol signs, double-cabin cargo pickup trucks are applied road symbol signs system, such as a car without restrictions on time allowed to travel in urban areas, and are allowed to travel in the lanes reserved for cars.

The research shows that countries in the region, such as Singapore, Brunei, and the Philippines, apply tax rates to pickup cars for passenger and cargo transport like other vehicles, regardless of vehicle type. However, some countries apply excise tax rates for double-cabin cargo pickup trucks at a lower rate than for passenger cars with fewer than 9 seats. Example: In Cambodia, the lower rate is at 30%; In Thailand, at about 17%.

To ensure the state management of double-cabin cargo pickup trucks and regulate the use of vehicles in big cities, the registration fee for dual-cabin cargo pickup trucks was revised under Decree No. 10/2022/ND-CP dated January 15, 2022, of the Government. From April 10, 2019, the first registration fee for this truck is equal to 60% of the first registration fee for passenger cars having 9 seats or fewer.

The MoF said that to ensure a tax policy suitable for vehicle use purposes, it is necessary to study the excise tax rate applicable to double-cabin cargo pickup trucks following the current regulations.

By Thuy Linh/Ngoc Loan

Related News

MoF Steering Committee 389 launches a peak campaign against smuggling during Lunar New Year 2025

MoF Steering Committee 389 launches a peak campaign against smuggling during Lunar New Year 2025

VCN - In the coming time, smuggling and trade fraud activities is forecast to take place complicatedly, especially before, during and after the Lunar New Year 2025.
Review of VAT exemptions for imported machinery and equipment

Review of VAT exemptions for imported machinery and equipment

VCN - The General Department of Vietnam Customs has directed provincial and municipal customs departments to review, inspect, and address issues related to the implementation of VAT exemption policies for specialized machinery and equipment used in agricultural production.
Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

VCN - Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Perfecting tax policy for goods traded via e-commerce

Perfecting tax policy for goods traded via e-commerce

VCN - In order to ensure the goal of developing e-commerce activities without causing loss of state budget revenue, the Customs authority is actively coordinating with policy advisory units of the Ministry of Finance to research and review regulations on tax exemption for import and export goods transacted via e-commerce.

Latest News

Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax procedures and policies for the business community.
New regulations on procurement, exploitation, and leasing of public assets

New regulations on procurement, exploitation, and leasing of public assets

VCN - Decree No. 114/2024/ND-CP, which amends and supplements certain articles of Decree No. 151/2017/ND-CP detailing the implementation of the Law on Management and Use of Public Assets, introduces significant changes. These include updates on authority, methods of asset exploitation in agencies and units, plans for leasing, joint ventures, and partnerships in public service units, as well as centralized procurement procedures.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

VCN - Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year. These efforts aim to promptly address challenges, resolve obstacles, and facilitate import-export activities. Such meetings offer an opportunity for the Customs authority and the business community to exchange, share insights, and find solutions to enhance operational quality and efficiency.
Step up negotiations on customs commitments within the FTA framework

Step up negotiations on customs commitments within the FTA framework

VCN - Promoting negotiations on customs commitments within the framework of free trade agreements (FTAs) plays an important role in facilitating import and export activities. These commitments not only help optimize the customs clearance process but also minimize costs and risks for businesses, opening up great opportunities for Vietnamese goods to access deeper into the international market.

More News

Proposal to amend regulations on goods circulation

Proposal to amend regulations on goods circulation

VCN - To perfect the policy on customs procedures, inspection and supervision, enterprises and associations have contributed many ideas from practical activities. Thereby, the Drafting Committee (General Department of Customs) has more perspectives to build policies to meet the goal of facilitating trade and ensuring state management of customs.
Customs tightens oversight on e-commerce imports

Customs tightens oversight on e-commerce imports

VCN - The General Department of Vietnam Customs has issued new directives to enhance the management of imported goods transacted through e-commerce platforms, addressing ambiguities and ensuring consistent enforcement across provincial and municipal customs departments.
Bringing practical experience into customs management policy

Bringing practical experience into customs management policy

VCN - At the workshop to collect opinions from Southern Customs units on the draft Decree amending and supplementing Decree 08/2015/ND-CP dated January 21, 2015 of the Government; the draft Circular amending and supplementing Circular 38/2015/TT-BTC dated March 25, 2015 and Circular 39/2018/TT-BTC dated April 20, 2018 of the Minister of Finance, organized by the General Department of Customs last weekend, many Southern Customs units contributed specific contents from practical operations in the locality.
Businesses anticipate new policies on customs procedures and supervision

Businesses anticipate new policies on customs procedures and supervision

VCN - With this year’s import-export turnover estimated at nearly US$800 billion and forecasting to surpass this milestone next year, the business community holds high expectations for upcoming amendments and supplements to customs management, procedures, and supervision policies. These changes are expected not only to facilitate trade but also to enhance state management efficiency and support economic development.
Do exported foods need iodine supplementation?

Do exported foods need iodine supplementation?

VCN - Currently, Vietnamese processed food products, including seafood products, have been exported to more than 160 countries, and no country has yet required that "salt used in food processing must be salt with added iodine".
Amendments to the Value-Added Tax Law passed: Fertilizers to be taxed at 5%

Amendments to the Value-Added Tax Law passed: Fertilizers to be taxed at 5%

VCN - With the majority of National Assembly deputies voting in favor, the National Assembly officially approved the revised Value-Added Tax (VAT) Law during its afternoon session on November 26, 2024, as part of the 8th session's agenda.
Proposal to change the application time of new regulations on construction materials import

Proposal to change the application time of new regulations on construction materials import

VCN - To comply with the circular on quality management of construction materials, many businesses importing this item are complaining about difficulties and asking for an extension of the implementation time.
Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

VCN - In order to promote the early recovery and development of production and business activities, contributing back to the State budget, the Ministry of Finance proposed to continue reducing 2% of VAT on groups of goods and services currently subject to a tax rate of 10% in the first 6 months of 2025.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

VCN - In order to avoid the situation of arriving at the airport or border gate and only finding out that you owe taxes and being temporarily suspended from leaving the country by the Tax Authority, the Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Read More

Your care

Latest Most read
Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax pr
New regulations on procurement, exploitation, and leasing of public assets

New regulations on procurement, exploitation, and leasing of public assets

Decree No. 114/2024/ND-CP, which amends and supplements certain articles of Decree No. 151/2017/ND-CP detailing the implementation of the Law on Management and Use of Public Assets, introduces significant changes.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year
Step up negotiations on customs commitments within the FTA framework

Step up negotiations on customs commitments within the FTA framework

VCN - In addition to promoting negotiations on customs commitments within the framework of FTAs ​​under negotiation, the General Department of Customs actively supports businesses to effectively utilize commitments in signed FTAs, especially CPTPP, EVFTA,
Proposal to amend regulations on goods circulation

Proposal to amend regulations on goods circulation

VCN - The Vietnam Association of Maritime Agents, Brokers and Services has proposes to amend and supplement regulations related to the transport of goods subject to customs supervision.
Mobile Version