The Ministry of Finance proposes to continue reducing 50% of registration fees for domestically produced and assembled cars - Photo: NAM TRAN
Proposal to reduce 50% of registration fee for domestically produced cars
Following the Government's direction, the Ministry of Finance submitted to the Government a proposal to continue reducing 50% of registration fees for domestically manufactured and assembled cars from August 1 to January 31, 2025.
From February 1, 2025 onwards, the registration fee collection rate will continue to be implemented according to the provisions of Decree No. 10 of 2022.
The Ministry of Finance believes that continuing to reduce registration fees for domestically produced and assembled cars is a necessary solution to help stimulate consumption, provide financial support to people and businesses, and create momentum to restore growth for the domestic automobile manufacturing and assembly industry in the context of many economic difficulties and challenges.
It is expected that a 50% reduction in registration fees for domestically produced and assembled cars could reduce state budget revenue from registration fees by an average of about VND867 billion/month.
However, the Ministry of Finance believes that this policy will increase the number of cars sold and registered. Therefore, revenue from registration fees, special consumption tax, and value added tax may increase.
As at 2020 and 2022, the Government also allows a 50% reduction in registration fees for domestically manufactured and assembled cars.
According to the Ministry of Finance's assessment, the budget revenue from registration fees during this period decreased by about VND5,238 billion. The revenue from special consumption tax and value added tax increased by about VND5,200 billion.
Stimulate domestic car purchases
To support economic development, from 2020 to 2023, the Ministry of Finance has proposed three times to reduce the registration fee by 50% for domestically produced and assembled cars. Each reduction lasts for 6 months.
Accordingly, the first time is from June 28, 2020 to December 31, 2020; the second time is from December 1, 2021 to May 31, 2022; the third time is in the last 6 months of 2023.
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.
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.
In fact, the automobile market in the last months of 2023 and the beginning of 2024, the total automobile market sales in the first 3 months of 2024 (including passenger cars and commercial vehicles) decreased significantly.
According to the sales report of the Vietnam Automobile Manufacturers Association, sales of enterprises under VAMA reached 58,165 vehicles, down 17% compared to the same period last year.
Source: https://tuoitre.vn/de-xuat-giam-tiep-mot-nua-le-phi-truoc-ba-doi-voi-o-to-trong-nuoc-20240625221152483.htm
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