Vietnam extends special consumption tax incentives for electric vehicles.

The Vietnamese National Assembly passed a law on the 24th to amend and supplement several articles of the "Special Consumption Tax Law", deciding to extend the preferential policy of special consumption tax for electric vehicles with 24 seats or less until the end of 2030. The tax rate for electric vehicles will continue to enjoy the lowest tax rate among all vehicle categories. Vietnam had previously lowered the special consumption tax for electric vehicles to 1% to 3% on March 1, 2022, with the original expiration date set for March 1, 2027; while the special consumption tax rate for fuel vehicles is 10% to 150%. The Vietnamese Ministry of Transport stated that electric vehicles "have the lowest tax rate in the automotive industry". Vietnamese Minister of Finance Dinh Tien Dung pointed out in his report to the National Assembly that extending the preferential period would help stabilize consumer expectations and also facilitate businesses in formulating medium and long-term investment plans.