The Ministry of Finance has submitted a draft decree to the government which would reduce registration fees on cars with fewer 10 seats starting March 15, said Deputy Minister Vu Thi Mai.
Auto registration fees would be cut from March 15
If approved, the new decree would replace the current Decree No. 45/2011, which aimed to bolster the sluggish domestic auto market.
Under the draft decree, the fees for first-time of registration for cars with less than 10 seats will be 10%. Based on the 10% fees that would be levied by the government, they are also considering allowing localities to raise the fees by a maximum of 50%, depending on their situation.
The highest fees for the first time of registrations would be 15% in total, Mai said, adding that at present Hanoi was applying the ceiling fees of 20% for new cars while HCM City and other localities were charging 15%.
The Ministry of Finance has also proposed cutting the fees for second registrations to 2%, compared to the existing rate of between 10% and 12%.
2012 was a challenging year for Vietnam’s automobile industry. The market dropped by more than one-third, with just 93,000 units sold.
Most of last year’s decline can be attributed to increases in existing fees and taxes, as well as proposed new levies.
General director of Audi Vietnam, Laurent Genet, was cited by Vietnam News Agency as saying that Vietnam needed to convey support to manufacturers if the country wanted to develop its auto industry.
Toyota Motor Vietnam’s general director, Yoshihisa Maruta, said that the biggest problem now is with policy. The most important thing to help the industry grow was a stable, clear and consistent management policy, he said.
