Business

Ministry supports 50% cut on auto registration fees

The Ministry of Industry and Trade (MoIT) said that it is necessary to devise a 50% cut on auto registration fees and extend the payment of the excise tax on locally-assembled and manufactured cars to stimulate consumer demand and ease the burden on businesses.
Ministry supports 50% cut on auto registration fees ảnh 1Workers assemble an auto at Ford Vietnam's Hai Duong assembly facility. (Photo: VNA)
Hanoi (VNS/VNA) - The Ministry of Industry and Trade (MoIT) said thatit is necessary to devise a 50% cut on auto registration fees and extend thepayment of the excise tax on locally-assembled and manufactured cars tostimulate consumer demand and ease the burden on businesses.

The above suggestion was announced by the MoIT’s deputy minister Phan Thi Thangin a written document sent to the Ministry of Finance for consideration onApril 25.

In the document, the MoIT said that the risk of economic turmoil had had agreat impact on businesses, including domestic automobile assemblers andmanufacturers. In addition, pressure from tightened credit policy, highinterest rates, and market liquidity problems also have influence on consumerpsychology as many people have decided to tighten their spending.

In the first three months this year, Vietnam Automobile ManufacturersAssociation (VAMA) members sold a total of nearly 77,090 units, down 31%compared to the same period last year.

By the end of March 2023, the sales of domestically-assembled cars decreased by34% while the number of imported cars dropped by 4% compared to the same periodlast year.

After seeing a decline in sales of most car manufacturers in the first quarter,car manufacturers and dealers have applied preferential and promotionalpolicies that focus on supporting registration fees or cutting prices for carbuyers to stimulate demand. However, sales volumes have remained far belowexpectation.

To assist businesses in stabilising their production and maintaining revenue,the MoIT strongly believes that it is essential to cut registration fees fordomestically- manufactured and assembled vehicles until the end of 2023.

Months ago, VAMA and the Vietnam Association of Mechanical Industry (VAMI)asked the Government to halve the registration fee for locally assembled ormanufactured cars during the first half of the year to boost market demand.

The two associations also jointly asked for an extension of the deadline to paythe excise tax. Both policies should be imposed in the first quarter or earlysecond quarter 2023.

The Government then requested the Ministry of Finance to consider conducting aplan for a car registration fee cut. However, the Ministry of Finance rejectedthe request for the 50% registration fee reduction for domesticallymanufactured and assembled vehicles for fear of affecting local budget revenueand violating international commitments.

Regarding the extension of the excise tax payment, the Ministry of Finance hasplanned to extend the deadline to pay the excise tax fordomestically-manufactured and assembled vehicles.

The Ministry of Industry and Trade agreed with the plan and asked the Ministryof Finance to allow an extension for excise tax payment in October 2023 insteadof applying for the payable excise tax arising in the June, July, August and Septembertax period only./.
VNA
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