The Ministry of Finance has proposed the registration fee for battery-powered cars for the first time will be 50% of those for petrol and diesel cars to encourage automakers to produce the item.

Other countries also give priority the development and use of battery-powered cars.

According to the Ministry of Finance, environmental pollution and climate change are of global concern due to many factors, especially the harmful effects of air pollution caused by vehicles.

The quality of the air environment in general and in big cities in particular is impacted by the dust and harmful emissions from socio-economic development activities, transportation and more. The vehicle emissions accounts for a large proportion of the total emissions causing urban air pollution.

The sharp increase in the number of fossil-fuel cars in recent year is a major cause of air pollution. Especially, Hanoi and HCM City have recorded alarming pollution levels.

To improve the air quality, countries have provided many solutions. The use of battery-powered cars instead of petrol cars is to reduce emissions, contributing to environmental protection, and is an ongoing global trend.

Battery-powered electric cars accounted for two-thirds of newly registered electric cars in 2020. These cars use materials that are good for the environment and have many benefits like cost savings, zero emissions reducing noise and improving air quality.

In Vietnam, people's demand for using personal vehicles is very high. This had led to a large amount of emissions causing environmental pollution. Therefore, the development of battery-powered cars will be appropriate, especially in big cities.

To encourage the production and use of these cars, some nations have exempted from registration fee or taxes for the vehicles, for example, Republic of Cyprus, Greece, Hungary, the Netherlands, Poland, Ireland, Latvia, and Spain.

China reduces 50% of fee, France falls from 50% -100% depending on the locality, and Finland collects only 2.7%.

Countries like Belgium and Australia only apply preferential policies on registration fees in some localities.

The ministry encourages businesses to invest in the production of battery-powered electric cars to ensure the supply of those in Vietnamese market in the near future and recommends consumers to use the cars, contributing to reducing the emissions and environmental protection.

Based on the outstanding advantages of the vehicles and to avoid putting pressure on the State budget balance, especially the local budget, the ministry proposes the rate of registration fees for the first time for the cars is 50% of petrol and diesel cars with the same number of seats within five years from the effective date of this draft decree revising Decree 140/2016.