The Government has just issued Decree 109/2024/ND-CP stipulating the registration fee for automobiles, trailers or semi-trailers pulled by automobiles and vehicles similar to automobiles manufactured and assembled domestically.
Accordingly, from September 1, 2024 to November 30, 2024, the registration fee collection rate is equal to 50% of the collection rate prescribed in Decree No. 10/2022/ND-CP dated January 15, 2022 of the Government regulating registration fees; current Resolutions of the People's Council or current Decisions of the People's Committees of provinces and centrally run cities on local registration fee collection rates and amendments, supplements and replacements (if any).
From December 1, 2024 onwards, the registration fee collection rate will continue to be implemented according to the provisions of Decree No. 10/2022/ND-CP dated January 15, 2022 of the Government regulating registration fees; current Resolutions of the People's Council or current Decisions of the People's Committees of provinces and centrally run cities on local registration fee collection rates and amendments, supplements and replacements (if any).
Decree 109/2024/ND-CP takes effect from September 1, 2024 to November 30, 2024.
According to the Ministry of Finance, the continued reduction of 50% of registration fees for domestically produced and assembled cars has a positive impact on consumers as a financial support solution and consumption incentive.
According to the Ministry of Finance, a 50% reduction in the LPTB collection rate for domestically produced and assembled cars could reduce the state budget revenue from LPTB by an average of about VND 867 billion/month (equivalent to the reduction according to Decree No. 41/2023/ND-CP).
In addition, the 50% reduction in the LPTB collection rate for domestically produced and assembled cars may affect the state budget balance of localities. According to the provisions of the State Budget Law, LPTB collection belongs to the local budget.
Reducing the excise tax by 50% for domestically produced and assembled cars will likely increase the number of cars sold and registered, so revenue from excise tax, special consumption tax, and VAT may increase.
However, the actual revenue from special consumption tax and VAT is only concentrated in 8 localities where there are domestic automobile manufacturing and assembling companies, while other localities have reduced local budget revenue from this policy (localities have requested the central budget to compensate for this revenue shortfall to ensure local budget balance, thereby having certain impacts on the budget balance of many localities.
Source: https://phunuvietnam.vn/from-1-9-chinh-phu-giam-50-le-phi-truoc-ba-o-to-san-xuat-lap-rap-trong-nuoc-2024083019054067.htm
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