The Ministry of Transportation proposes a $1,000 incentive for the purchase of electric vehicles.

DNHN - The Ministry of Transportation has just submitted a proposal to Deputy Prime Minister Tran Hong Ha regarding policies to promote the transition to electric vehicles. There are three types of support: battery electric vehicles, fuel cell electric.

Regarding the user incentive mechanism, the Ministry of Transport proposes to exempt and reduce registration and licence plate fees for electric vehicles. In addition to facilitating access to credit, purchasers of electric vehicles will receive direct subsidies. Concurrently, develop and implement mechanisms and policies to regulate the acquisition and use of electric vehicles when using public funds.

For electric cars manufactured and assembled, the Ministry of Transport recommends, reviews and supplements development priority policies (especially public transport) in relevant laws; formulating and promulgating regulations to raise emission standards and limit fuel consumption to limit vehicles using fossil fuels; amending and supplementing regulations on the disposal of used electric car batteries.

Simultaneously, the Ministry proposed investment incentives for investment projects in the production and assembly of electric vehicles and electric vehicle batteries; exemption and reduction of import tax on equipment, production lines, and import of complete components and components for the production and assembly of electric vehicles and electric vehicle batteries.

Manufacturing, assembly, and maintenance enterprises have access to preferential mechanisms for imported electric vehicles; access to finance and credit; and priority access to production and assembly technology transfer. There is also a tax incentive mechanism for imported electric vehicles.

Notably, according to the Ministry of Transport, many businesses have proposed to continue applying the special consumption tax rate for electric cars with nine seats or fewer at 3% after February 28, 2027, for domestically produced and assembled electric cars; VAT exemption for the first five years and a 50% reduction for the following five years.

As for the registration fee, electric vehicles are exempt for the first five years beginning March 1, 2022. In the next two years (beginning 1 March 2027), the first registration fee for petrol and diesel vehicles with the same number of seats is reduced by fifty per cent. Licence fees were waived for the first three years, then reduced by fifty per cent for the following two years.

"Subsidising people with a support amount when purchasing electric cars to change their consumption behaviour from petrol and diesel cars to electric cars is approximately one thousand dollars per vehicle," the Ministry of Transportation proposed. export.

In addition, the Ministry of Transport proposes to issue regulations on electric charging stations, standards for connecting charging stations, and provisions permitting the construction of public charging stations on works with existing land use purposes without conversion. Use of land to construct a charging station. Examining the exemption of construction permits, modifying investment policies, and prioritising power supply for public charging station infrastructure.

Ngoc Phi (th)