Shall fines for traffic violations in Vietnam increase from January 1, 2025? Are cars subject to excise tax in Vietnam?

Shall fines for traffic violations in Vietnam increase from January 1, 2025?

Beginning January 1, 2025, Decree 168/2024/ND-CP governing administrative penalties in the field of road traffic has replaced certain sections, clauses, and articles of Decree 100/2019/ND-CP (as amended and supplemented by Decree 123/2021/ND-CP).

According to the new regulations in Decree 168/2024/ND-CP, many violations will see a substantial increase in administrative penalties compared to current levels. Specifically, there are three groups of violations subject to increased fines, including:

Below is a summary of traffic violations subject to multiple increases in fines starting in 2025:

(1) Traffic fines for cars

(2) Traffic fines for motorcycles:

Shall fines for traffic violations in Vietnam increase from January 1, 2025? (Image from the Internet)

Are cars subject to excise tax in Vietnam?

According to Article 2 of the Law on excise tax 2008 (amended by clause 1, Article 1 of the Law on Amendments to the excise tax 2014), the subjects liable to excise tax are stipulated as follows:

Taxable Objects

1. Goods:

a) Cigarettes, cigars, and other tobacco products for smoking, sniffing, chewing, inhaling, sucking;

b) Alcohol;

c) Beer;

d) Cars with less than 24 seats, including cars that carry both passengers and goods with more than two rows of seats, with a fixed partition between the passenger compartment and the cargo compartment;

đ) Motorcycles with displacements above 125cc;

e) Aircraft, yachts;

g) Different types of gasoline;

h) Air conditioners with a capacity of 90,000 BTU or less;

i) Playing cards;

k) Paper votive offerings.

2. Services:

a) Nightclub business;

b) Massage or karaoke parlor business;

c) Casinos; video game machines with prizes including jackpot machines, slot machines, and similar types;

d) Betting business;

dd) Golf business, including selling memberships and golf tickets;

e) Lottery business.

Thus, according to the regulations, cars with less than 24 seats (including cars that carry both passengers and goods with more than two rows of seats, with a fixed partition between the passenger compartment and the cargo compartment) must pay a excise tax.

Which cars are exempt from registration fee in Vietnam?

Based on clause 21, Article 10 of Decree 10/2022/ND-CP and Article 5 of Circular 13/2022/TT-BTC, the types of cars exempt from registration fee include:

- Fire trucks, ambulances, X-ray vehicles, rescue vehicles (including tow trucks, breakdown vehicles); garbage trucks, water spraying vehicles, water tank vehicles, street sweeping vehicles, suction vehicles, waste treatment vehicles; special-use vehicles, specialized motorcycles for war veterans, war invalids, and people with disabilities registered in their names.

- Cars owned by foreign organizations and individuals:

+ Diplomatic missions, consular offices, representative agencies of international organizations under the United Nations system.

+ Diplomatic, consular officials, administrative and technical staff of diplomatic missions, consular offices, members of the representative agencies of international organizations under the United Nations system, and their family members who are not Vietnamese citizens or not residing in Vietnam and have been issued diplomatic or official identity cards by the Ministry of Foreign Affairs of Vietnam.

+ Foreign organizations and individuals not covered above, but eligible for exemption or non-payment of registration fee under international commitments to which the Socialist Republic of Vietnam is a member.

- Cars owned by organizations and individuals that have been granted ownership and use certificates registered again without having to pay registration fee in the following cases:

+ Cars licensed by the competent authority of the Democratic Republic of Vietnam, the Provisional Revolutionary Government of the Republic of South Vietnam, the Socialist Republic of Vietnam, or under previous policy to be reissued with a new ownership and usage certificate without changing the asset owner.

+ Cars of state-owned enterprises or public service providers that have been equitized to become joint-stock companies or restructured in accordance with the law.

+ Cars registered as family assets when divided among family members following legal regulations.

+ Cars that have been issued new ownership and use certificates due to loss, damage, or defect of the certificate. Organizations and individuals are not required to declare or process registration fee exemption in these cases.

- Cars exchanged within the same organization, cars moved to other locations without ownership change, exempt from registration fee in the following cases:

+ Individuals, cooperative members contributing cars as capital to enterprises, credit institutions, cooperatives; enterprises, credit institutions, cooperatives dissolved, divided, consolidated, or receiving vehicles back from former contributing individuals or members.

+ Cars transferred within the same enterprise or administrative unit based on decisions from competent authorities.

- Cars of organizations and individuals exempt from registration fees due to division, separation, merger, incorporation, or renaming of the organization by competent authorities.

- Cars of organizations and individuals that have paid registration fees, moved to the local usage place without ownership change.

- Public passenger transport vehicles using clean energy.

- Special-purpose vehicles, assets serving management for defense, and security purposes exempt from registration fees under clause 13, Article 10 of Decree 10/2022/ND-CP, including:

Cars listed as special or specialized assets for management in defense and security purposes as regulated by law, registered by the Ministry of Defense, Ministry of Public Security, or authorized units.