Domestic car assembly and production enjoys 50% preferential registration fee - Photo: H.HANH
According to the decree just signed by Deputy Prime Minister Ho Duc Phoc - Minister of Finance - on August 29, the first registration fee for cars, trailers or semi-trailers and similar vehicles manufactured and assembled domestically will be reduced by 50% from September 1 to November 30.
3 month discount until end of November
From December 1, this fee will return to the old level, which means 100% of the first payment will be applied to the above types of vehicles, according to the provisions of Decree No. 10/2022 of the Government on registration fees; current resolutions of the People's Council or current decisions of the People's Committees of provinces and centrally run cities on registration fee collection levels.
Currently, the registration fee for cars is calculated based on a percentage of each type and each locality when registering. For example, the first fee for cars in Hanoi, Quang Ninh, Hai Phong is 12% of the car value; Ho Chi Minh City is 10%, Ha Tinh is 11%...
For pickup trucks, the registration fee is 60% of the first fee for cars. From the second fee payment, the registration fee is 2% and is applied uniformly nationwide.
The policy of reducing 50% of registration fees was implemented to support the domestically produced and assembled automobile industry for 3 years 2020, 2022 and 2023. Each reduction in registration fees for domestically produced and assembled automobiles lasted for 6 months.
According to assessments, the 50% reduction in registration fees for domestically produced and assembled cars has contributed to stimulating demand for this product.
Specifically, in the last 6 months of 2020, the number of domestically manufactured and assembled cars registered for the first time was 209,584 vehicles. Thus, each month, on average, 34,930 domestically manufactured and assembled cars were registered for the first time, more than double the number in the first 6 months of 2020.
Auto market declines in production and sales
By 2022, the average number of domestically produced and assembled cars registered for the first time in the first 5 months of the year was 33,690 vehicles/month, 1.5 times higher than the average number of vehicles in the last 7 months of the year.
In the last 6 months of 2023, the number of domestically manufactured and assembled cars registered for the first time was 176,483 vehicles, an average of 29,413 vehicles/month, an increase of 1.6 times compared to the first 6 months of 2023.
According to the Ministry of Finance, in the first 3 months of 2024, the total automobile market sales (including passenger cars and commercial vehicles) decreased by 17% compared to the same period in 2023 and reached only 58,165 vehicles, of which passenger cars reached 41,858 units, down 21%; commercial vehicles reached 15,915 units, down 6% and special-purpose vehicles reached 392 units, down 48% compared to the first quarter of 2023.
The Vietnam Automobile Manufacturers Association said that the average monthly output in the first four months of 2024 was about 14,167 vehicles/month. While the output and sales of domestically manufactured and assembled cars continued to decrease, the number of imported cars increased.
The Ministry of Finance calculated that the application of the policy of reducing registration fees could reduce budget revenue by about VND867 billion/month, affecting local budget revenue. However, the fee reduction would help increase the number of vehicles sold and registered, and revenue from registration fees, special consumption tax, and value added tax could increase.
Source: https://tuoitre.vn/chinh-thuc-giam-50-le-phi-truoc-ba-voi-o-to-con-tu-1-9-2024083016524636.htm
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