Official decision, 50% reduction in registration fee for 'made in Vietnam' cars

On June 28, the Government issued Decree 70/2020/ND-CP stipulating the registration fee collection rate equal to 50% of the collection rate prescribed in Decree No. 20/2019/ND-CP dated February 21, 2019.

Accordingly, the initial registration fee for automobiles, trailers or semi-trailers pulled by automobiles and similar vehicles manufactured and assembled domestically is 50% of the registration fee for these vehicles as prescribed in Decree No. 20/2019/ND-CP and decisions of the People's Committees of provinces and centrally run cities.

The price of domestically produced and assembled cars will be significantly reduced thanks to reduced registration fees.

The application of the reduced registration fee level applies from the effective date of this Decree until December 31, 2020.

Previously, when soliciting comments on this draft decree, the Ministry of Finance received 47 comments, including 14 comments from ministries and branches; 27 comments from localities; 6 comments from associations, businesses and other organizations. Basically, all comments agreed with the necessity and content of the draft decree (40/47 comments agreed completely).

Immediately after the Decree was issued, the General Department of Taxation issued a telegram requesting the Tax Department to direct the Tax Branches in the province to promptly implement the application of the registration fee collection rate as prescribed in Decree 70 to stimulate domestic consumption according to the direction of the Government in Resolution 84/NQ-TTg dated May 29, 2020.