Vietnam proposes tax reduction on hybrid electric vehicles

HANOI, Sept. 6 (Xinhua) — The Vietnam Automobile Manufacturers’ Association has proposed cutting down the special consumption tax rates on hybrid electric vehicles to better reflect the environmental benefits of different types of vehicles, Vietnam News reported Friday.
The association has suggested that the tax on hybrid electric vehicles (HEVs) should remain at 70 percent of the rate applied to conventional petrol or diesel cars.
The association has proposed reducing the tax on Plug-in Hybrid Electric Vehicles (PHEVs) to 50 percent of the rate applied to petrol or diesel cars, down from the current 70 percent.
HEVs and PHEVs are less prevalent in Vietnam compared to other countries. The existing special consumption tax rates in Vietnam make those two types of vehicles 10-20 percent more expensive than comparable internal combustion engine vehicles, said the association.
Adjusting the tax rates will make HEVs and PHEVs more financially attractive to consumers, which could lead to higher adoption rates and would support Vietnam’s net-zero commitment by reducing overall emissions by 2050, according to the association. ■