Financial aid proposal for electric vehicles rejected

September 07, 2023

HCMC – The Ministry of Finance has thrown no weight behind a proposal to provide direct financial assistance to electric vehicle (EV) manufacturers and buyers, stating that the Government’s financial resources should prioritize social welfare programs over high-income earners, including EV manufacturers and buyers. In a recent communication to the Ministry of Transport, the Ministry of Finance recommended the removal of proposals to offer tax incentives for EV manufacturing, assembly, and charging station construction. Regarding tax incentives for EV manufacturing, assembly, and batteries, the Ministry of Finance noted that these sectors already enjoy high tax incentives under existing laws. Tax reductions and exemptions apply not only to imported accessories and spare parts for EV manufacturing but also to materials imported for EV and EV battery production. Therefore, the Ministry of Finance suggested that charging station construction should be included as projects eligible for investment incentives under investment law.

The source of this news is from The Saigon Times