REDUCE EXCISE TAX RATE FOR BATTERY ELECTRIC CARS TO 1-3% IN 5 YEARS FROM MARCH 01
This highlight content is prescribed by the National Assembly in the Law No. 03/2022/QH15 dated January 11, 2022 of the National Assembly Amending and Supplementing a Number of Articles of the Law on Public Investment, Law on Investment in the Form of Public-Private Partnership, Law on Investment, Housing Law, Bidding Law, Electricity Law, Law on Enterprises, Law on Excise Tax and the Law on Enforcement of Civil Judgments.
Accordingly, to promote the development of battery electric cars, the National Assembly decide on excise tax reduction as follows:
Firstly, for battery electric passenger cars of 9 seats or fewer, the tax rate to be applied from March 01, 2022 to the end of February 28, 2027 and from March 01, 2027 shall be 3% and 11%, respectively, less than 4% compared to the previous rate.
For battery electric passenger cars of between 10 seats and under 16 seats, from March 01, 2022 to the end of February 28, 2027 and from March 01, 2027, the tax rate shall be 2% and 7% (the previous rate is 10%), respectively, etc. The National Assembly also decides on reducing the excise tax rate for battery electric passenger cars of between 16 seats and under 24 seats to 1% in five years from March 01, 2022.
This Law also amends and supplements 8 other laws, including the Law on Public Investment, Law on Investment in the Form of Public-Private Partnership, Law on Investment, Housing Law, Bidding Law, Electricity Law, Law on Enterprises, and the Law on Enforcement of Civil Judgments, with some noticeable contents, such as adding the sector and trade of trading in cybersecurity products and services (excluding trading in cyberinformation security products and services and civil cryptography products and services) to the List of sectors and trades subject to conditional business investment, etc.
This Law takes effect from March 01, 2022.
