50% reduction in registration fee for domestic cars from July 1

From July 1 to the end of this year, domestically assembled cars and trailers or semi-trailers will have their registration fees reduced by 50%.

According to Decree 41 issued by the Government today, the first registration fee for cars, trailers or semi-trailers pulled by cars and similar domestically produced and assembled vehicles will be reduced by 50% from July 1 to December 31, 2023. From January 1, 2024, this fee will return to the old level.

In fact, reducing the registration fee does not help reduce the price of the car but will reduce the costs of keeping the car on the road. Reducing this type of fee also aims to stimulate domestic car consumption in the context of many difficulties for businesses in this field.

According to the Vietnam Automobile Manufacturers Association (VAMA), sales of this industry have declined since the end of 2022 and have shown no signs of improvement in the first half of this year.

In the last two months of 2022, business sales decreased by 44% compared to the same period in 2021. As of April 2023, sales of VAMA members decreased by about 34%, equivalent to 42,000 vehicles, compared to the same period last year. However, according to the Ministry of Finance , this fee reduction will hardly increase car consumption as strongly as in the 2020-2022 period due to the current decrease in purchasing power and consumption. It is estimated that the reduction in registration fees will reduce the budget by about 8,000-9,000 billion VND.

Currently, the registration fee for small cars is calculated based on a percentage of each type and each locality when registering. For example, the first fee for small cars in Hanoi , Quang Ninh, Hai Phong is 12% of the car's value; 10% in Ho Chi Minh City, 11% in Ha Tinh... As for pickup trucks, the registration fee is 60% of the first fee for small cars.

From the second payment, the registration fee is 2% and is applied uniformly nationwide.

Hoai Thu

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