VAMA proposes to reduce special consumption tax on hybrid cars

The Vietnam Automobile Manufacturers Association – VAMA has proposed reducing special consumption tax and registration fees for HEV and PHEV vehicles.

At the beginning of this year, the National Assembly decided to reduce the special consumption tax on battery electric vehicles with less than 9 seats from 15% to 3%. The new tax rate applies from March this year, for 5 years. After March 2027, the special consumption tax rate on battery electric vehicles is 11%.

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However, hybrid electric vehicles such as HEV, PHEV… do not enjoy this preferential policy as they are still subject to a 15% special consumption tax and 100% registration fee. Accordingly, to immediately contribute to reducing emissions without requiring large investments in charging station infrastructure, special consumption taxes and registration fees can be reduced for Hybrid vehicles with low emissions such as HEV, PHEV. Then, proceed to a large and synchronous investment to develop a charging station system; integrating with static traffic to be able to charge while parking, a power generation system to ensure enough clean power source…

In addition, regarding regulations on fuel consumption limits for road vehicles in Vietnam, VAMA proposes to build fuel consumption based on the general average principle instead of fuel consumption. Fixed pressure for each vehicle model.

The association also requested the Government to soon approve the strategy for developing Vietnam’s auto industry in the new situation. Special attention should be paid to specific, specific incentive policies for the automobile manufacturing industry and automobile support industries, creating a legal corridor to truly attract and encourage businesses, ensuring compliance with international commitments.

Vietnam currently has just over 1,000 Hybrid cars, accounting for about 0.3%. Meanwhile, in Thailand – a place that has many similarities with us – there are up to 35,000 Hybrid cars, accounting for over 3% of the total number of cars. This is great room for Hybrid vehicles to develop in the near future in Vietnam.

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The electric vehicle segment is divided into 4 main lines: Hybrid vehicles (HEV), rechargeable hybrid vehicles (PHEV), electric vehicles (BEV) and hydrogen fuel vehicles (FCEV). The core components of electrified vehicles are electric motors, batteries and accumulators.

According to Bloomberg, by 2030, there will be more than 90 million electric cars in the global market, of which Hybrid HEVs and PHEVs will be the main trend of electrified vehicles before gradually transitioning to fully electric vehicles (BEVs). ) and Hydrogen fuel vehicle (FCEV).

The difference between HEVs and other electric vehicles is that this type of vehicle uses the principle of regenerating and storing excess energy during the vehicle’s deceleration and braking. This energy will be used to supplement operation and acceleration. Besides, car manufacturers are currently pursuing the electrification trend to have environmentally friendly and fuel-efficient cars. Accordingly, electrified car models, including Hybrids, are becoming the main product lines of many car manufacturers.

With electric vehicles like BEVs, the popularity in developing countries like Vietnam is not high, depending on factors such as road conditions, infrastructure, charging station arrangement, usage habits, etc. Experts assess that HEV vehicles are completely suitable and have the potential to develop in the near future.

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