Ministry of Finance proposes to reduce 50% of registration fee for domestically produced cars

The Ministry of Finance has just sought comments on the draft Government Decree on registration fees for domestically produced and assembled cars.

According to the draft decree, from the effective date of this decree until December 31, 2023: The registration fee (LPTB) collection rate is equal to 50% of the collection rate prescribed in Decree No. 10/2022/ND-CP of the Government regulating LPTB.

Reduce budget revenue by 8,000 - 9,000 billion VND when reducing registration fees by 50%. Photo: Hoang Ha

From January 1, 2024 onwards, the LPTB collection rate will continue to be implemented according to the provisions of Decree No. 10/2022/ND-CP of the Government regulating LPTB; current resolutions of the People's Council or current decisions of the People's Committees of provinces and centrally run cities on LPTB collection rates at the local level and amendments, supplements and replacements (if any).

According to the Ministry of Finance, in order to contribute to stimulating consumption and removing difficulties for domestic automobile manufacturing and assembling enterprises in the context of many economic difficulties and challenges, continuing to reduce the LPTB collection rate for domestically manufactured and assembled automobiles is one of the necessary solutions.

Along with the general difficulties of the economy, the domestic automobile manufacturing and assembly industry also faces many difficulties. According to the Vietnam Automobile Manufacturers Association (VAMA), despite a significant improvement in supply, the situation of the automobile industry in the first quarter of 2023 is still quite gloomy, with sales declining, especially in the last months of 2022 (Lunar New Year), showing unusual and worrying signs for businesses in the Vietnamese automobile industry.

According to the Ministry of Finance, the continued 50% reduction in excise tax on domestically produced and assembled cars has a positive impact on consumers, domestic car manufacturers and assemblers, and the socio-economy.

According to the assessment, a 50% reduction in the LPTB collection rate for domestically manufactured and assembled cars could reduce state budget revenue by about VND 8,000 - 9,000 billion (in the first 6 months of 2022, the reduction in LPTB collection in terms of policy is VND 8,727 billion).

The Ministry of Industry and Trade wants to reduce registration fees for cars by 50% . It is necessary to continue applying the policy of supporting the reduction of registration fees for domestically produced and assembled cars for an appropriate period of time. Previously, the Ministry of Finance had expressed disagreement.

Source: https://vietnamnet.vn/bo-tai-chinh-de-xuat-giam-50-le-phi-truoc-ba-o-to-san-xuat-trong-nuoc-2152375.html