Urgently develop a draft Decree to reduce 50% of registration fees for domestic cars

Accordingly, on June 7, 2023, the Government Office issued Document 4174/VPCP-KTTH on registration fee collection rates for domestically manufactured and assembled automobiles.

Construction site drafts decree to reduce 50% of tax on domestic cars picture 1 — In the near future, the LPTB collection rate for domestically manufactured and assembled cars will be reduced by 50% and applied from July 1, 2023 to the end of 2023. Illustrative photo

Specifically, considering the proposal of the Ministry of Finance on the proposed registration fee (LPTB) for domestically manufactured and assembled automobiles, following Official Dispatch No. 4019/VPCP-KTTH dated June 1, 2023, implementing the direction of the Prime Minister, Deputy Prime Minister Le Minh Khai has the following comments:

The Ministry of Finance shall preside over and coordinate with relevant agencies to urgently develop a draft Decree of the Government on the LPTB collection rate for domestically manufactured and assembled automobiles (Decree) as in the previous two times (in the direction of reducing the LPTB collection rate by 50% for domestically manufactured and assembled automobiles) and apply from July 1, 2023 to the end of 2023; submit to the Government before June 15, 2023.

The Ministry of Justice shall promptly appraise the above draft Decree immediately after receiving complete documents from the Ministry of Finance, ensuring the deadline for submission to the Government.

The Ministries of Finance and Justice are fully responsible to the Government and the Prime Minister for the quality and progress of assigned tasks, ensuring compliance with legal regulations, feasibility, effectiveness and timeliness, and no delays.

The decree, when issued, was aimed at boosting the consumption of domestically assembled and manufactured vehicles. At the beginning of this year, both production output and sales of this type of product decreased sharply in terms of output and sales. Specifically, in May 2023, the number of domestically produced and assembled cars reached 27,000, a slight increase of 2.2% compared to April (26,400 vehicles) but only 67.4% compared to the same period last year.

In the first 5 months of 2023, the total number of domestically produced and assembled cars is estimated at 133,600 units, down 24% over the same period last year.

In April 2023, car sales in the entire Vietnamese market reached only 22,409 vehicles, down 25% and 47% respectively compared to March 2023 and the same period last year. At the same time, car consumption after the first 4 months of the year also decreased sharply, reaching only 92,801 vehicles.

Gia Phat

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