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Wednesday, June 19, 2024

Request for car registration fee cut turned down

The Saigon Times

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HCMC – The Ministry of Finance (MOF) has rejected a request for the 50% registration fee reduction for domestically manufactured, assembled and imported automobiles.

It said the extension would violate the national treatment rule in the frameworks of the World Trade Organization (WTO) and Free Trade Agreements, as WTO’s members that do not have a factory in Vietnam may see the cut as Government subsidies and demand an explanation.

To avoid that, the fee reduction must include completely built-up cars, which may lead to deficits in local budget revenues, the ministry added.

The request was sent to the Government last month by the Vietnam Association of Mechanical Industry, the Vietnam Automobile Manufacturers’ Association, the Vehicle Importers Vietnam Association, and the provincial governments of Quang Nam in central Vietnam and Ninh Binh in the north.

The Finance Ministry was assigned to look into the feasibility of their proposals.

In December 2021, the Government issued a resolution to reduce the car registration fee by 50%. The fee cut came after the fourth wave of Covid-19 had inflicted heavy damage on almost all sectors of the economy, including the automotive industry, and helped auto sales bounce back.

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