Vietnam reduces tax on imported hybrid cars

Vietnam’s Finance Ministry said that imported hybrid vehicles that comply with energy efficiency standards will now be taxed at a level of 42%. Imported vehicles with fewer than 10 seats are currently taxed at a rate of between 45% and 60% of the vehicle’s retail price. As a result, the Vietnamese government has now stipulated that gasoline-powered vehicles that improve fuel efficiency by 30% will need to pay only 70% of the special consumption tax applied to their normal counterparts. (October 1, 2009)