Vietnam continues slashing registration fees for domestically manufactured automobiles
To continue to remove difficulties for domestic automobile manufacturing and assembling enterprises in the face of the negative impact of the Covid-19 epidemic as well as to stimulate consumption demand, Deputy Prime Minister Le Minh Khai signed and promulgated the Decree on reduction of the registration fee in 2020 for domestically built vehicles.
According to Decree 103, from December 1, 2021, to the end of May 31, 2022, the collection rate of the registration fee is equal to 50 percent of the rate specified in the Government's Decree No. 20/2019 with amended and supplemented articles of the Government's Decree No. 140/2016 on registration fee; of the People's Council’s current resolutions, or the People's Committees’ current decisions of the provinces and centrally-run cities.
From June 1, 2022, onward, the registration fees of domestically produced automobiles will continue to follow the current rate.
Assessing the impact of this policy, the Ministry of Finance said that the half of the fees on domestically manufactured and assembled cars will have positive effects such as stimulating consumer demand, encouraging people to buy more vehicles as well as encouraging the development of automobiles and promoting domestic automobile manufacturing and assembling enterprises to resume supply chains, increasing investment expansion in automobile production and assembly in Vietnam.
The Ministry of Finance also said that the registration fee cut is necessary though it will reduce budget revenue. However, the policy is expected to increase automobile consumption; therefore, the total budget revenue on fuel consumption, special consumption tax, and value added tax will increase.
According to statistics, when implementing the policy of 50 percent reduction in the registration fee for domestically manufactured and assembled cars from June 28, 2020, to the end of December 31, 2020; the collection of registration fee in the last 6 months of 2020 decreased by VND7,314 billion whereas the total state budget revenue increased by VND14,110 billion.
