Government of Vietnam directs to continue reducing registration fee for domestic automobiles by 50% from July 1, 2023?
Who will sign the price list of registration fees for automobiles and motorbikes?
On May 22, 2023, the Ministry of Finance of Vietnam issued Decision No. 1033/QD-BTC in 2023 on authorizing the signing of the Decision on the Price List of registration fees for automobiles and motorbikes.
According to that, Article 1 of Decision No. 1033/QD-BTC in 2023 stipulates as follows:
Article 1. Authorizing the Acting Director of the General Department of Taxation, authorized by the Minister of Finance to sign the Decision on the price list for calculating the registration fee for automobiles and motorbikes and Decision on the adjusted and supplemented price list for calculating the registration fee for automobiles and motorbikes, promulgated in 2023 according to the provisions of Clauses 2 and 3, Article 7 of Decree No. 10/2022/ND-CP dated January 15, 2022 of the Government of Vietnam providing for registration fees.
Thus, from May 22, 2023, the Acting Director of the General Department of Taxation will have the authority to sign a decision on the price list for calculating the registration fee for automobiles and motorbikes and a decision on the price list of the registration fees for automobiles and motorbikes.
In case there is a new type of automobile or motorbike that is not included in the price list for registration fee calculation or there is a price fluctuation as prescribed by law, the General Department of Taxation is responsible for:
- Assuming the prime responsibility for coordinating in developing the draft Decision on the adjusted and supplemented price list for calculating the registration fee for automobiles and motorbikes;
- Submitting to the Ministry of Finance of Vietnam for approval before signing the decision of the Ministry of Finance of Vietnam on the revised and supplemented price list for calculating registration fees for automobiles and motorbikes.
Government of Vietnam directs to continue reducing registration fee for domestic automobiles by 50% from July 1, 2023? (Image from the Internet)
Government of Vietnam directs to continue reducing registration fee for domestic automobiles by 50% from July 1, 2023?
On June 7, 2023, the Government Office of Vietnam issued Official Dispatch No. 4174/VPCP-KTTH in 2023 to the Minister of Finance and the Ministry of Justice on the collection of registration fees for domestically produced and assembled automobiles.
Specifically, the Government of Vietnam directed the Ministry of Finance to implement a number of notable contents as follows:
The Ministry of Finance of Vietnam shall assume the prime responsibility for, and coordinate with relevant agencies in, expeditiously developing a draft Decree of the Government of Vietnam on the registration fee rate for domestically manufactured and assembled automobiles (Decree) as in the previous two times (in the direction of reducing 50% of registration fee for domestically manufactured and assembled automobiles) and applied from July 1, 2023 to the end of 2023; submitted to the Government of Vietnam before June 15, 2023.
Thus, according to the above content, in the near future, the Ministry of Finance of Vietnam will develop a Decree on registration fee rates for domestically manufactured and assembled automobiles and submit it to the Government of Vietnam before June 15, 2023.
Specifically, the Decree will include a 50% reduction in the domestic automobile registration fee (as the previous two reductions).
The Ministry of Finance of Vietnam and the Ministry of Justice take comprehensive responsibility before the Government of Vietnam and the Prime Minister for the quality and progress of the assigned tasks, ensuring compliance with the law, feasibility and efficiency, and on time as required, there must be no delay.
How much is the automobile registration fee?
Pursuant to Clause 5, Article 8 of Decree No. 10/2022/ND-CP, there are regulations on the registration fee rates (%) as follows:
Registration fee rates (%)
...
5. Motor vehicles, trailers or semi-trailers towed by motor vehicles, or equivalences: 2%.
Except:
a) Passenger motor vehicles with 9 seats or fewer (including pickups for passenger transport), to which the rate of 10% applies upon first-time registration. If it is necessary to apply a higher rate to match local circumstances, the People's Council of the province or centrally affiliated city shall decide an increase not exceeding 50% of the general rate specified in this Point.
b) Pickups for cargo transport with the maximum payload capacity allowed to be in traffic of under 950 kg and 5 or fewer seats and vans with the maximum payload capacity allowed to be in traffic of under 950 kg, to which the rate equal to 60% of the first-time registration fee for passenger motor vehicles with 9 seats or fewer applies upon first-time registration.
c) Electric cars running on batteries:
- Within 3 years from the date this Decree comes into force: the first-time registration fee is 0%.
- Within the next 2 years: the first-time registration fee is 50% of the fee rate for petrol and oil cars with the same quantity of seats.
d) Types of motor vehicles prescribed in Points a, b, and c of this Clause, to which the re-registration fee rate of 2% applies uniformly on a nation-wide scale.
Tax agencies shall consider the type of vehicle specified in the certificate of technical safety and quality and environment protection as issued by Vietnamese registry agencies to determine the registration fees payable on motor vehicles, trailers or semi-trailers towed by motor vehicles, and equivalences according to this Clause.
Thus, the automobile registration fee is determined at 2%.
Particularly in some cases for passenger automobiles of 9 seats or less, pick-up automobiles, battery-powered electric automobiles, the registration fee is determined according to the above regulations and guidance in Clause 2 Article 4 of Circular No. 13/2022/TT-BTC.
LawNet