Electric cars on charge at a station in Hà Nội. — VNA/VNS Photo Tuấn Anh

HÀ NỘI — The Việt Nam Chamber of Commerce and Industry (VCCI) said it supports the Ministry of Finance's proposal to extend the registration fee waiving period for electric cars.

The finance ministry is gathering opinions on a draft decree that amends and supplements several provisions of Decree No. 10/2022/ND-CP on registration fees.

According to the current decree, battery-powered electric cars registered for the first time are subject to a zero per cent registration fee within three years, starting from March 1, 2022.

The new draft decree proposes applying this waiver for electric cars from the date the decree comes into effect – which is expected to be March 1, 2025 – until February 28, 2027.

So compared to the current regulations, the draft extends the first-time registration fee exemption for electric cars until February 28, 2027.

According to the finance ministry's calculations, implementing this policy will lead to a reduction in State budget revenues by more than VNĐ4.8 trillion (US$188 million) per year, which is a further reduction of VNĐ2.4 trillion ($94 million) per year compared to implementing current regulations.

However, the drafting agency believes that the registration fee waiver will help develop the electric vehicle market and industry, supporting industries, as well as creating jobs and increasing income for workers.

In its comments on the draft, VCCI says it supports the extended waiver, since it incentivises people to purchase electric cars, which will help to reduce vehicle exhaust fumes and air pollution.

The policy also creates favourable conditions for electric car manufacturers and businesses to expand their markets and increase sales.

While it will decrease the State budget revenue, the long-term positive impact of using electric cars on the economy and society is more important, as air pollution and environmental pollution have been pressing issues in Việt Nam and affecting public health, VCCI added.

The organisation believes the policy will contribute to promoting the 'green' transition, developing the domestic electric automobile industry, and bringing long-term benefits to the economy, the environment, and the public. — BIZHUB/VNS