The Ministry of Finance said that, implementing the Party and State's policy on the arrangement of local administrative units (merging provinces and communes; abolishing district level), it is necessary to review and amend a number of provisions in Decree No. 10/2022/ND-CP (on the level of registration fee collection (LPTB) for different vehicles according to district level, exemption of LPTB for organizations and individuals according to commune, ward, town level...), ensuring smooth implementation of LPTB collection without any problems.
In addition, it is necessary to review and amend a number of provisions on land price calculation, classification of vehicles subject to land use tax, and exemption from land use tax to ensure consistency with the provisions of the 2024 Land Law, the 2024 Law on Traffic Order and Safety, and the 2023 Law on Cooperatives.
Regarding the amendments related to the review and arrangement of the apparatus, the Ministry of Finance proposes: Amending and supplementing Clause 4, Article 8 of Decree No. 10/2022/ND-CP on the LPTB collection rate according to the percentage as follows: the collection rate for motorbikes is 2%; for motorbikes paying LPTB for the second time onwards, the collection rate is 1%.
The basis for the proposed amendment and supplement is that according to the provisions of Clause 4, Article 8 of Decree No. 10/2022/ND-CP, vehicle owners in 6 centrally-run cities and 83 provincial cities must pay a 5% registration fee when registering a motorbike for the first time. According to the policy of administrative unit arrangement, the district level will be abolished and the current communes and wards will be merged, reducing by about 60%.
Thus, the administrative boundaries of communes and wards in provincial cities and towns as prescribed in Decree No. 10/2022/ND-CP mentioned above will change compared to the current one. After the rearrangement, the number of provinces and centrally run cities will be reduced from 63 to 34 provincial-level administrative units. Some provinces will be merged into centrally run cities (such as Hai Duong merged into Hai Phong City, Quang Nam merged into Da Nang City ...).
If the calculation and collection of LPTB is applied according to the provisions of Decree No. 10/2022/ND-CP, people in provinces (except provincial cities) merged into centrally-run cities when registering motorbikes will have to pay LPTB at a higher rate (an increase of 3%). For example, people in Hanoi and Ho Chi Minh City, previously when buying a motorbike worth 50 million VND, would have to pay 2.5 million VND in LPTB, but in the near future, this rate will be reduced to 1 million VND if the draft is passed.
In addition to the LPTB for motorbikes, the next changes are that the LPTB calculation price for cars and motorbikes in provinces and centrally-run cities will be issued by the People's Committee of that place, instead of the Ministry of Finance as at present.
Decree No. 10/2022/ND-CP stipulates that the price for calculating the land use tax for houses and the price for calculating the land use tax shall be implemented according to the price list issued by the provincial People's Committee. Therefore, the amendment of the authority to issue the price list for calculating the land use tax and transferring it to the provincial People's Committee ensures consistency in the spirit of organization and arrangement of the apparatus according to the Party and State's orientation on decentralization and delegation of power to local authorities; creating conditions for localities to be proactive in applying the price for calculating and collecting the land use tax.
Currently, the National Assembly has allowed the City People's Councils of all 6 centrally-run cities to have the authority to adjust the level or rate of fees and charges (under the authority of central agencies) higher than that applied in the city when necessary. Therefore, the draft Decree proposes to remove the regulation on the 5% LPTB collection rate for motorbikes registered in the cities as informed above.
Source: https://www.sggp.org.vn/du-kien-bo-quy-dinh-le-phi-truoc-ba-5-voi-xe-may-dang-ky-tai-cac-thanh-pho-post799399.html
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