Ministry of Industry and Trade supports 50% reduction in car registration fees

At a regular press conference held on the afternoon of May 18, Deputy Minister of Industry and Trade Do Thang Hai said that to remove difficulties for domestic automobile manufacturing enterprises, the Ministry proposed to continue implementing a 50% reduction in automobile registration fees.

“There are opinions that if the reduction is made, the budget will face difficulties in terms of revenue, however, we do not agree with this opinion. In fact, in 2021, when the registration fee is reduced, production and business will be maintained and developed.

Tax revenue to local budgets not only did not decrease but increased. According to the report of the Ministry of Finance, it not only decreased but also increased by more than 2,000 billion VND. Therefore, the Ministry of Industry and Trade continues to support this," Mr. Hai emphasized.

Ministry of Industry and Trade supports 50% reduction in car registration fee - 1 — The Ministry of Industry and Trade said it will continue to support a 50% reduction in registration fees for cars (Photo: Khai Pham).

Providing more information to the press on this content, Mr. Nguyen Ngoc Thanh, Deputy Director of the Department of Industry, said that since the beginning of the year, automobile manufacturing enterprises have been facing a situation of high inventory.

"The reasons for the large number of vehicles in inventory are typically due to difficulty in accessing bank loans, high interest rates, unstable exchange rates and inflation. In addition, there are financial difficulties," he said.

According to Mr. Thanh, businesses, associations, and provinces with automobile manufacturing plants have petitioned the Ministry of Industry and Trade to reduce registration fees and other obligations. The Ministry has also reported to the Government to reduce registration fees and consider extending the deadline for late payment of special consumption tax and VAT.

"Currently, the Government is assigning the Ministry of Finance to study the proposal. The Ministry of Industry and Trade recognizes that in 2020-2022, we have applied a reduction in registration tax, in addition to the efforts of businesses to reduce selling prices and cut costs, but still need promotion from competent authorities," said Mr. Thanh.

Emphasizing the Ministry of Industry and Trade's view in favor of reducing registration tax by 50%, the leader of the Department of Industry said that the Ministry proposed to reduce it immediately in 2023, a period under the Government's authority to consider.

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