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Tuesday, September 27, 2022

Toll fees for BOT road projects reduced from Feb 1

The Saigon Times

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HCMC – Investors of build-operate-transfer (BOT) road projects have reduced the toll fees for these projects from February 1 after the value added tax was cut from 10% to 8%.

Deputy Minister of Transport Le Dinh Tho has signed a document asking the investors of road projects to reduce toll fees, the local media reported.

Vietnam Expressway Corporation (VEC) has cut the toll fees for the expressways that it is managing and operating by two percentage points, applicable from February 1 to December 31 this year.

Earlier, the Government lowered the value added tax by two percentage points in 2022, applicable to goods and services which are currently subject to the 10% value added tax.

The decision was included in the Government’s resolution on tax reductions and exemptions in line with the National Assembly’s Resolution 43/2022/QH15 on fiscal and monetary policies to support the socioeconomic recovery and development efforts.

According to the Ministry of Transport, the fee reduction may cause traffic congestion at tollgates, especially at electronic toll collection (ETC) lanes.

The ministry has asked the Directorate for Roads of Vietnam to instruct service providers, investors of BOT road projects and other relevant agencies to adjust the toll fees.

They should also enhance their coordination to ensure the smooth and safe traffic and the transparent fee collection at tollgates.

VEC, toll fee collection service providers and investors must strictly conduct the fee reduction.

They were also asked to find solutions to ensure smooth traffic at tollgates, such as preparing cash with different denominations.

In addition, the Directorate for Roads of Vietnam must strengthen the promotion of the toll fee reduction, diversify methods to allow road users to easily top up their accounts, encourage vehicles to use the ETC service and limit cash-based fee collection.

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