Recently, the National Assembly has adopted the Law No. 03/2022/QH15 amending and supplementing a number of articles of the Law on Public Investment, the Law on Investment in the form of public-private partnership, the Law on Investment, the Law on Housing, the Law on Bidding, the Law on Electricity Law on Enterprises, Law on Special Consumption Tax and Law on Execution of Civil Judgments (“Law No. 03”). Law No. 03 officially took effect from March 1, 2022.
The following article will summarize the adjustment of Law No. 03 to the 2008Law on Special Consumption Tax.
Specifically, Article 6 of Law No. 03 provides a form of special consumption tax rates for electric cars. Accordingly, the tax rate is deeply reduced from 10 – 25% in the 2008 Law to under 15%. Especially for battery-powered electric vehicles, the tax rate from 01/3/2022 to 28/2/2027 is only 1-3% and increases to 4-11% from 28/2/2027 onwards. This clearly indicates the State’s incentive policy for the production and consumption of electric car products in Vietnam.
|
Products, services |
Tax rate (%) |
|
(1) Battery-powered electric automobile |
|
|
- Types for passengers having 9 seats or less |
|
|
+ From March 1, 2022 to the end of February 28, 2027 |
3 |
|
+ From March 1, 2027 |
11 |
|
- Types for passengers e having from 10 to under 16 seats |
|
|
+ From March 1, 2022 to the end of February 28, 2027 |
2 |
|
+ From March 1, 2027 |
7 |
|
- Types for passengers having from 16 to under 24 seats |
|
|
+ From March 1, 2022 to the end of February 28, 2027 |
1 |
|
+ From March 1, 2027 |
4 |
|
- Types for both passengers and goods |
|
|
+ From March 1, 2022 to the end of February 28, 2027 |
2 |
|
+ From March 1, 2027 |
7 |
|
(2) Other electric automobiles |
|
|
- Types for passengers having from 9 seats or less |
15 |
|
- Types for passengers having from 10 to under 16 seats |
10 |
|
- Types for passengers having from 16 to under 24 seats |
5 |
|
- Types for both passengers and goods |
10 |
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