Electric car buyers should get $1,000 cash incentive: transport ministry

By Anh Duy   August 3, 2023 | 11:13 pm PT
Electric car buyers should get $1,000 cash incentive: transport ministry
A person drives an electric car in Hanoi. Photo by VnExpress/Giang Huy
The Ministry of Transport has proposed a cash incentive of around US$1,000 for electric cars to induce consumption of the vehicles.

It has also recommended that the government should reduce or scrap their registration fees.

Transport companies that use electric cars should be eligible for soft loans and electric buses used in public transport should get higher subsidies than normal buses, it said.

Furthermore, it wanted parking space in urban areas to be prioritized for electric cars.

Electric car and battery manufacturer should receive incentives, and taxes on imports of parts should be waived, it said.

It called for policies to encourage setting up of charging stations.

An online survey of 4,900 VnExpress readers this week found 74% supporting the $1,000 cash-support proposal.

The government now collects a 3% special consumption tax on electric cars with less than nine seats produced locally. This is a reduction from 5-15% levels earlier.

The rate will remain unchanged until March 2027, but the ministry said manufacturers want it extended.

They also want value-added tax on electric cars to be scrapped for five years and a 50% waiver for the next five, it said.

The number of electric vehicles produced, assembled and imported has surged from 167 units in 2021 to 12,585 units in the first seven months of this year, it added.

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