Decree slashes car registration fees

Decree slashes car registration fees

Registration fees for new cars with less than 10 seats will be reduced from the current 15-20 per cent of the value of the car to 10-15 per cent from April 1.

Under Decree 45/2011/ND-CP, registration fees for second-hand cars with less than 10 seats will remain at 2 per cent.

According to the current regulations, cities and provinces are authorised to adjust registration fees depending on economic conditions but it must range between 10 and 15 per cent. Currently, Ha Noi is applying the fee of 20 per cent while the rate in HCM City is 15 per cent.

Previously, the Government also cancelled the implementation of car ownership fees which would have seen each car owners pay VND20-50 million ($960-2,400) per year.

The Viet Nam Automobile Manufacturers Association (VAMA) has recently asked the Government to reduce new car registration fees, besides proposing standardising the fee for providing car number plates to VND2 million ($96) in order to help auto makers overcome their current difficulties.

Despite a seasonal increase of 75 per cent year-on-year in January 2013 when 7,363 cars were sold, automobile sales in Viet Nam fell by a record 37 per cent in 2012.

The association said the plunge could be attributed to the economic recession.

 vietnamnews