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On the morning of April 23, 2026, the National Assembly discussed draft amendments to several laws, including the Personal Income Tax Law, Value-Added Tax Law, Corporate Income Tax Law, and Special Consumption Tax Law. During the session, many deputies focused on the policy of imposing a special consumption tax on battery-powered electric vehicles.
Deputy Doan Hung Vu, deputy director of the Dong Thap Province Department of Science and Technology, endorsed the government’s proposal. He said the policy of tax incentives for passenger cars with fewer than 24 seats powered by batteries would be extended to the end of 2030.
The drafting agency said the extension is intended to gradually shift consumer behavior from fossil-fuel vehicles to electric vehicles, thereby reducing greenhouse gas emissions, urban pollution, and dependence on traditional fuels amid volatile prices and supply.
Deputy Doan Hung Vu warned about environmental risks from batteries when damaged or disposed. He said consumption incentives should be accompanied by development of charging infrastructure, improvement of technical infrastructure, and promotion of technology transfer for environmentally friendly battery production.
He also proposed adding a mandatory recall and recycling system for used batteries and building a professional collection and processing system. In addition, he called for incentives to invest in research and development for recycling technology, including replacing older battery technologies with safer, newer-generation batteries to avoid new pollution during processing.
According to the deputy, supporting battery-powered vehicles aligns with green growth and the energy transition, helps reduce greenhouse gas emissions, and supports Vietnam’s net-zero emissions target by 2050. He added that extending tax incentives would reduce urban air and noise pollution and could open opportunities to develop a new industry, create jobs, and stimulate economic growth.
Deputy Nguyen Thi Viet Nga (Hai Phong) agreed with the policy as it supports the green transition and reduces dependence on fossil fuels. However, she said tax incentives are effective only when paired with charging infrastructure, grid capacity, end-of-life battery handling, and higher localization.
She noted that the impact assessment acknowledged risks of local grid overload, challenges in handling end-of-life batteries, and an estimated revenue loss of about 10,000 billion dong per year.
Deputy Nguyen Thi Viet Nga said that after the law is passed, the government should implement coordinated measures beyond taxes so the policy does not merely stimulate demand, but instead helps build a sustainable green transport ecosystem.
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