The Vietnam Automobile Transportation Association has shown their opposition to the Ministry of Transport’s proposal on raising certain types of taxes on motorbike and autos.
The Ministry of Transport's motorbike and auto fees proposal faces the opposition from the Automobile Transportation Association.
In a recent document sent to the Ministry of Transport, the association said the adjustment of the special consumption tax and registration fees included in the draft regulation on restricting private vehicles in big cities does not fit the current economic situation.
Nguyen Manh Hung, the association's Chairman, said that application of import, special consumption and value added taxes has already pushed Vietnamese auto prices 2.5-3 times higher than those of other regional countries. So far this year, registration fees have been increased 12%-20% in Hanoi and 10%-15% in HCM City. Fees for registration and licensing have also been increased considerably. In Hanoi, this fees for vehicles of below 10 seats not in the transport business have been increased to VND20 million (USD952.3) from VND2 million (USD95.2)
Registration fees for motorbikes costing more than VND40 million (USD1,904) have doubled to VND4 million (USD190.4) from VND2 million.
“All fees for motorbikes and personal vehicles have increased recently, and they should not be increased further. People will not be able to afford to buy anymore," Hung added.
The association is also opposed to the imposition of environmental fees for motorbikes and autos, saying that currently, the fee of VND1,000 per litre on petrol and oil has already been stipulated in the Law on Environment.
“Motorbikes and autos have to pay the fees for the use of fuel, and it would be redundant to apply one further environmental fees,” the official asserted.
The association has also recommended removing proposed fees on private vehicles entering the city centre, because circulation fees on vehicles at peak hours is included in the draft regulation on restricting private vehicles in big cities.
Hung explained that, “Traffic jams in Hanoi and HCM City occur mostly at rush hour, while the traffic situation is normal at other times.To apply two separate fees would be too much.”
