Vietnam Extends EV Special Consumption Tax Incentives Until End of 2030

On April 24, Vietnam’s National Assembly passed a law amending and supplementing relevant provisions of the Special Consumption Tax Law, deciding to extend the special consumption tax incentives for electric vehicles with fewer than 24 seats until December 31, 2030. Under this policy, electric vehicles will continue to be subject to the lowest tax rate among all vehicle categories. Previously, Vietnam had reduced the special consumption tax rate on electric vehicles to 1%–3% effective March 1, 2022, with the original expiration date set for March 1, 2027. In comparison, the special consumption tax rate for gasoline-powered vehicles ranges from 10% to 150%. Vietnam’s transport authorities noted that electric vehicles currently enjoy the lowest tax rate in the automotive industry.