Proposal for 8 levels of road usage fees for cars

The Ministry of Finance has just submitted Document No. 22 to the Prime Minister on a draft Decree of the Government stipulating the collection rates, collection, payment, exemption, management and use of road use fees.

It is expected that the fee applied to cars (except cars of the National Defense and Police forces) will be divided into 8 groups, according to the vehicle's load and seats, from 130,000 VND/month to 1,430,000 VND/month.

For cars of the National Defense and Police forces, they are divided into two groups, in which cars are 1,000,000 VND/year and trucks and passenger cars are 1,500,000 VND/year (road usage fees paid for cars of the National Defense and Police forces are guaranteed by the State budget).

It is expected that the fee applied to cars will be divided into 8 groups, depending on the vehicle's load and seats, from 130,000 VND/month to 1,430,000 VND/month. Photo: Dinh Hieu

Regarding the calculation and collection of fees, the Ministry of Finance proposes that the Ministry of National Defense and the Ministry of Public Security will pay fees for all cars under their management once a year. For other cars, fees will be paid according to the inspection cycle; according to the calendar year; or according to the month in case the business has to pay fees of 30 million VND or more.

The state agency managing road traffic is allowed to retain 1.2% of the collected fees to cover the costs of toll collection activities. The toll inspection centers submit the fees to the Vietnam Register (within 5 days from the date of toll collection) for the Register to compile, declare and pay the fees to the State budget.

Inspection centers are allowed to retain 1.32% of collected fees to cover the costs of fee collection activities. In case the inspection center belongs to an enterprise, the retained fees are the center's revenue; the center declares and pays taxes according to regulations.

This draft decree also proposes 5 free cases including: ambulances, fire trucks, funeral vehicles, specialized vehicles serving the National Defense and Police forces.

According to the Ministry of Finance, since the implementation of the road toll collection policy in 2016, the annual road toll revenue has been about VND9,000 billion, paid to the State budget and spent entirely on road maintenance activities. In addition to the annual toll revenue, the State budget allocates an additional VND3,000 billion for the maintenance and repair of the road system managed by the State. However, this amount only covers about 40% of the expenditure on road maintenance activities.