Vietnam slashes auto registration fee by half
Prime Minister Nguyen Xuan Phuc has just signed Decree 70 allowing the cut of 50% of the registration fee for customers who buy locally-produced and assembled automobiles, effective June 28.
The decree is set to valid from today to the end of 2020. From January 1, 2021, the registration fee will return to the normal level.
The 50% cut in the car registration fee is among solutions presented by the Ministry of Industry and Trade to the Government to help enterprises recover and to stimulate consumption.
Right after the Government’s approval, the Generation Department of Taxation has asked local tax agencies to apply the new fee as per Decree 70. Speaking to Vnexpress website, Nguyen The Manh, deputy director of the General Department of Taxation, said the application of the new fee is expected to go smoothly from tomorrow.
Under the current legislation, registration fees for passenger cars, or cars with less than nine seats, at eight provinces and cities of Hanoi, Quang Ninh, Hai Phong, Lao Cai, Cao Bang, Lang Son, Son La, and Can Tho are 12% of the car price, while in Ha Tinh, the rate is 11%, and HCMC, Danang and other cities charge 10%.
Meanwhile, buyers of pick-up trucks with transport volume of less than 1,500 kilos and five seats or fewer, and vans with capacity of 1,500 kilos or less, will pay an amount equal to 60% of the nine-seat car’s registration fee.SGT
Instead of reducing taxes and fees, the State needs to set reasonable policies to develop automobile supporting industries, experts say.
The Ministry of Finance has officially asked the Government to cut 50 percent of the registration fee for customers who buy locally-produced and assembled automobiles.