Ministry says no to cuts in auto registration fees
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The Ministry of Finance has rejected a proposal to reduce auto registration fees by half, saying it is not necessary for the current setting.
The proposal was made by the Vietnam Automobile Manufacturers Association (VAMA), seeking support for manufacturers amid the Covid-19 pandemic.
However, the Ministry of Finance said that the government had already implemented different measures to support businesses and citizens last year, including extending the deadline for payment of taxes and land use fees and incentives on special consumption tax for cars manufactured or assembled locally.
“After reviewing the proposal, the Ministry of Finance sees that lowering registration fee is not suitable with the current setting,” it said.
Last year, the government had provided a 50 percent discount on the registration fees for cars produced domestically.
The move lowered the government’s revenues by VND6 trillion ($260 million).
The Ministry of Finance also denied VAMA’s request to lower the production of cars under an import tax incentive program.
Questions & Answers
Q.Who proposed the reduction in auto registration fees?
Who proposed the reduction in auto registration fees?
The Vietnam Automobile Manufacturers Association (VAMA) submitted the proposal. They sought support for manufacturers during the Covid-19 pandemic.
Q.Why did the Ministry of Finance reject the proposal to cut registration fees?
Why did the Ministry of Finance reject the proposal to cut registration fees?
The Ministry stated that lowering the registration fee is not suitable for the current setting. They also cited other support measures already implemented by the government.
Q.What other forms of support did the government provide last year?
What other forms of support did the government provide last year?
Last year, the government extended deadlines for tax and land use fee payments. It also offered incentives on special consumption tax for domestically produced or assembled cars.
Q.Did the government previously offer any discounts on car registration fees?
Did the government previously offer any discounts on car registration fees?
Yes, last year the government provided a 50 percent discount on registration fees for domestically produced cars. This reduced government revenues by VND6 trillion.
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