No further reduction in registration fees for domestically produced cars

With the Prime Minister's approval, the Ministry of Finance has just issued Circular 112 reducing 29 types of fees and charges until June 30 next year instead of the end of this year as previously prescribed. However, a leader of the Tax Policy Department said that the Prime Minister also agreed with the Ministry of Finance's proposal to not continue extending the 50% reduction.car registration fee.

Thus, the policy of reducing 50% of registration fees for domestically produced cars according to Decree 70 (implemented from June 28) will expire on December 31 as planned.

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Reporting to the Prime Minister, the Ministry of Finance assessed that the 50% reduction in registration fees is only a "short-term solution" to remove difficulties for businesses and domestic automobile production and assembly due to the impact of the pandemic. At the same time, this agency estimated that the above policy has reduced the state budget revenue by about 3,700 billion VND. At the same time, during the implementation process, embassies of several countries such as Indonesia, Thailand and Eurocham commented and met with the Ministry of Finance to propose discrimination between imported and domestically produced vehicles.

Meanwhile, to support people and businesses "post-Covid-19", the Prime Minister has agreed to continue reducing a number of fees and charges.Specifically, 50% reduction including fees and charges in the fieldstock(excluding fees for new issuance, re-issuance of practice certificates for individuals and securities supervision fees), construction investment project appraisal fees, basic design appraisal fees, technical design appraisal fees, construction estimate appraisal fees...

The fee for granting licenses to establish banks and non-bank credit institutions and the fee for granting construction capacity certificates to organizations and individuals will also be reduced by 50%. In addition, the Ministry of Finance will also reduce 30% of the fee for exploiting and using environmental data, 30% of the fee for exploiting and using meteorological and hydrological information and data, etc.

It is estimated that the budget will decrease by about VND 1,000 billion when reducing the above fees and charges in 2020, but the Ministry of Finance still proposes to continue extending the deadline until June 30, 2021.