The Government directed to reduce 50% of registration fees for domestic cars from July 1.

Specifically, on June 7, the Government Office issued a document notifying Deputy Prime Minister Le Minh Khai of the direction to the Minister of Finance and the Minister of Justice regarding the registration fee for domestically produced and assembled cars.

Accordingly, the Deputy Prime Minister requested the Ministry of Finance to preside over and coordinate with relevant agencies to urgently develop a draft Government Decree on the registration fee for domestically produced and assembled cars in the direction of reducing 50% and applying from July 1 to the end of the year. Submit to the Government before June 15.

The Ministry of Justice is assigned to promptly review the draft after receiving the dossier from the Ministry of Finance, to ensure the Decree is submitted to the Government before June 15.

The 50% reduction in registration fees is expected by many auto businesses to help the Vietnamese auto market thrive.

The above ministries are responsible to the Government and the Prime Minister for the quality and progress of assigned tasks, ensuring they are completed on time and without delay.

Previously, the People's Committees of Quang Nam and Ninh Binh provinces, the Vietnam Mechanical Enterprises Association and the Vietnam Automobile Manufacturers Association proposed a 50% reduction in registration fees for domestically produced and assembled cars due to the sharp decline in car market sales.

Afterwards, the Vietnam Automobile Importers Association (VIVA) also sent a petition to the Vietnamese National Assembly, the Ministry of Industry and Trade, the Ministry of Finance and the Government Office regarding the proposal to propose preferential registration fees for imported cars.

According to the report of the Vietnam Automobile Manufacturers Association (VAMA), the total car sales in the first three months of the year decreased significantly. Specifically, the car market decreased by 34% compared to the same period last year and decreased by 38% for passenger cars under 9 seats. Promotional programs from manufacturers and dealers are continuously launched to stimulate consumer demand, but the results are not as expected.

With this proposal, the Ministry of Industry and Trade said that domestic automobile manufacturing enterprises are facing a reality of quite high inventory levels. Some of the reasons leading to this situation are access to capital, high interest rates, exchange rates and inflation, etc., which also put pressure on enterprises in this field.

A representative of the Ministry of Industry and Trade said that automobile manufacturing enterprises, together with the VAMA Association and some localities with automobile manufacturing plants, have submitted a petition to the Ministry of Industry and Trade. The Ministry has reported to the Government to consider the proposal to reduce taxes and registration fees, and to consider extending and delaying payment of special consumption tax and value added tax. At present, the Government is assigning the Ministry of Finance to consider the petition proposed by the Ministry of Industry and Trade.

Also according to the Ministry of Industry and Trade, in the spirit of Resolution 11 of the Government, the Ministry of Industry and Trade's viewpoint strongly supports a 50% reduction in registration fees in 2023. However, the authority will be considered and approved by the Government./.