Government issues registration fee cut for domestic cars

The government has issued a decree on slashing registration fees for domestically produced and assembled cars from July 1.

Under the decree, registration fees will be halved for domestically produced and assembled cars between July 1 and December 31. The move was made following the Ministry of Finance’s proposal.

 

Registration fees will be halved for domestically produced and assembled cars between July 1 and December 31

The cut is aimed to support local auto manufacturers and assemblers which have been hard hit by the Covid-19 pandemic and the impact of exchange rates and high inflation.

However, the six-month car registration fee cut could reduce the state’s budget collection by as much as VND8-9 trillion (USD343-386 million), the Ministry of Finance forecasted.

Between December 1, 2021 and May 31, 2022, the government also halved registration fees for cars. Since June 1, 2022, the registration fee returned to the levels applied before December 1, 2021.