Business » Finance
Tax break on 20,000 electric taxis snubbed
  • By Phuong Dung | | April 13, 2016 04:51 PM
 >>  First 100 Renault electric cars to arrive in Vietnam in June

The Ministry of Finance has refused a local company’s proposal to provide tax incentives on the import of 20,000 electric taxis from French car-maker Renault.

The Huy Ho Company under the management of Mai Linh Group recently asked the ministry for a decrease and exemption on a range of taxes related to the import of the electric cars, including value-added tax, special consumption tax and others vehicle-related tariffs.


The first electric car in HCM City

The firm also proposed preferential treatment in terms of sourcing land for taxi ranks, including parking lots and charging stations, and a preferential 10-year term loan at 4% interest a year.

However, the Ministry of Finance disagreed with the company’s proposal, saying the import contract was signed before December 27, 2015, so taxis for passenger transport business were not eligible for tax incentives. So the company will have to pay taxes.

Under the contract signed between Mai Linh Group and French car-maker Renault, the first 100 electric taxis will begin operating in HCM City.

According to the USD938 million Mai Linh Group’s plan, by the end of 2019, 20,000 electric taxis will have been imported into Vietnam with half this fleet divided between the north and south.

The electric taxis will play a small part in mitigating environment pollution in big cities.

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