The Ministry of Finance has just sent the Ministry of Justice a dossier for appraisal of the draft Decree regulating the registration fee (LPTB) for domestically manufactured and assembled automobiles.

In this file, the Ministry of Finance also updated the comments of ministries, branches and localities. Accordingly, the units basically agreed with the draft Decree. In addition, the Ministry of Planning and Investment, the Ministry of Justice and the Ministry of Industry and Trade expressed concerns about violations of international commitments.

Specifically, continuing to reduce registration fees as in the draft Decree will violate international commitments, leading to the risk of being penalized for violations or retaliation from countries to which Vietnam exports goods. It is necessary to develop a plan to proactively respond.

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The Ministry of Finance submitted to the Government a decision to reduce registration fees for domestically produced and assembled cars. Photo: Hoang Ha

Regarding this issue, the Ministry of Finance said: In the official dispatch dated April 26, 2024 and the Government Submission No. 121/TTr-BTC dated May 31, 2024, the Ministry of Finance reported to the Government and the Prime Minister in detail on continuing to implement the policy of reducing 50% of the LPTB collection rate for domestically manufactured and assembled automobiles.

In particular, this agency has specifically assessed the impact of reducing the 50% LPTB collection rate for domestically produced and assembled cars, the violation of international commitments and proposed 2 options:

Option 1: consider not reducing the LPTB collection rate for domestically produced and assembled cars.

Option 2: reduce 50% of LPTB collection for domestically produced and assembled cars for 6 months.

Based on the analysis of the advantages and disadvantages of each option, the Ministry of Finance proposes that the Government implement option 1.

However, in Notice No. 264/TB-VPCP dated June 19, 2024, Deputy Prime Minister Le Minh Khai commented: Most opinions at the meeting agreed to submit to the Government regulations on reducing the LPTB for domestically produced and assembled automobiles in accordance with Resolution No. 44/NQ-CP and to develop the Decree according to the procedural order to ensure the progress and effectiveness of the policy, shortening.

The Ministry of Finance fully accepted the valid opinions at the meeting, completed the dossier of the Decree on the LPTB collection rate for domestically produced and assembled automobiles, in which it noted to supplement the content of analysis and impact assessment to ensure completeness, comprehensiveness, and consistency (impact on state budget revenue, impact on production and business activities of enterprises, level of violation of commitments, possibility of complaints and lawsuits), and reported to the Government in June 2024.

Implementing the direction of Deputy Prime Minister Le Minh Khai in the above announcement, the Ministry of Finance has drafted the Decree in accordance with the direction in Resolution No. 44/NQ-CP of the Government.

However, to respond to violations of international commitments as mentioned by the ministries, the Ministry of Finance submitted to the Government to assign the Ministry of Industry and Trade to preside over and coordinate with relevant agencies to review and develop response plans in case Vietnam is sued for violating international commitments.

Reducing car registration fees: Concerns about violating commitments and going against the trend . The Ministry of Finance is proposing to continue reducing car registration fees by 50%, but it is also worried about violating international commitments. In addition, according to experts, promoting the consumption of gasoline and diesel vehicles is going against the Net Zero trend.