The Vietnam government is planning to raise car taxes in order to cut fuel consumption and reduce traffic congestion.

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Under a draft law, a special consumption tax would be raised to 60% for consumers who buy cars with 2.0 to 3.0 litre engines and 70% for cars with engines bigger than 3.0 litres, from 50 percent now, the Finance Ministry said in a report on Thursday.


“The tax increase is aimed at encouraging consumers to protect the environment and saving fuel,” the Finance Ministry’s report said.


The new tax regime is expected to be approved by the National Assembly, the country’s legislative body, in November this year, Reuters reported.

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