Ministry of Finance: Do not increase car registration fees by 50%

The management agency confirmed that there has been no proposal to change the registration fee ceiling for cars with less than 10 seats, which is currently at 15%.

In response to the news that registration fees for cars with less than 10 seats will increase to 50% of the vehicle's value, Pham Dinh Thi, Director of the Tax Policy Department (Ministry of Finance), confirmed that this is not true. "There is no proposal from the Ministry of Finance for such an increase," said Mr. Thi.

According to the representative of the management agency, the Decree on registration fees has been issued by the Government and takes effect from January 1, 2017.Accordingly, cars with less than 10 seats (including the driver) must pay an initial registration fee of 10%.

The Ministry of Finance affirmed that there is no such thing as a car worth 800 million VND having to pay up to 400 million VND in registration fee. Illustrative photo

In case it is necessary to apply a higher collection rate to suit the actual conditions in each locality, the People's Council of the province or centrally-run city shall decide to adjust the increase but not more than 50% of the general regulation. Passenger cars with 9 seats or less shall pay the registration fee for the second time onwards at a rate of 2% and shall be applied uniformly nationwide.

"I think the person who provided the information misunderstood. The general registration fee is 10%, and localities are allowed to apply it but not more than 50% of this rate, which is 15%. The maximum fee is not 50%," explained the Director of the Tax Policy Department.

Currently, the registration fee for cars with less than 10 seats registered for the first time in Hanoi is 12%. Other localities generally have a rate of 10%.

According to VNE