Vietnam Extends EV Tax Cut to Drive Green Revolution
Vietnam aims to extend a special tax cut on electric vehicles until the end of 2030 to enhance EV sales and reduce emissions. Initially introduced in 2022, the tax reduction has already fostered significant sales growth. This effort aligns with Vietnam's 2050 net-zero goal.
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- Vietnam
In a decisive move to boost electric vehicle (EV) sales, Vietnam plans to extend a tax cut on EVs by nearly four years, pushing its expiration to the end of 2030, according to the parliament office.
The proposal to prolong this tax incentive comes as part of Vietnam's broader strategy to cut emissions and meet its ambitious 2050 net-zero target. Originally reduced in March 2022, the special consumption tax now stands at 1%-3%, significantly lower than the previous range of 4%-11%.
Since the initial tax cut, EV sales have surged dramatically, jumping from nearly 7,000 units in 2022 to approximately 175,000 last year. Each electric vehicle contributes to emission reductions, slashing 0.85 metric tons of carbon dioxide annually compared to traditional combustion engines.
(With inputs from agencies.)
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