Ministry to cut fees for second hand cars

Ministry to cut fees for second hand cars

The Ministry of Finance plans to lower ownership registration fees for second-hand automobiles, said finance minister Vuong Dinh Hue.

At 10-15 per cent of the vehicle's purchase price, the current rate for second-hand automobiles was nearly the same as the rate for new automobiles, Hue said.

Experts also recommended cutting the fee, even to the lowest level of 1 per cent, to encourage people with second-hand cars to register their vehicles.

Up to 40 per cent of second-hand vehicles have not been registered anew by their new owners, according to the Ministry of Public Security's Department for Administrative Management of Social Order.

The department said that high fees were a major deterrent to proper second-hand vehicle registration.

It is important for second-hand vehicle owners to register so that when accidents occur, the offending party can be held liable.

As for second-hand motorbikes, the finance ministry would keep their registration fee of 1 per cent unchanged as it was low and reasonable, Hue said.

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