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Road-use fees set to start next month

Update: December, 04/2012 - 10:10

HA NOI (VNS)— The Ministry of Finance has decided to introduce the controversial road-use fees from January 1, 2013.

The fees, which are still raising concerns among transport organisations and individuals about "an undue burden on car owners', will be imposed directly on all engined vehicles with fees ranging from VND50,000 to VND12.5 million (US$2.5-595) to provide funds for road maintenance.

Accordingly, motorbike owners will have to pay VND50,000-100,000 for bikes with cylinders of 100cu.cm and VND100,000-150,000 a year for those with cylinders of 100cu.cm and above. Fees will be collected by local People's Committees.

There will be 11 rates for cars. Private vehicles with less than 10 seats will be charged with about VND1.5 million ($74) a year, while lorries and commercial vehicles over 27 tonnes will bear the highest fee of VND12.5 million. The fees are lower than in a previous draft circular.

Car owners can pay the fee in two instalments each year at regular vehicle registry offices.

Ambulances, fire trucks, funeral cars, vehicles for national defence and public security will be exempt. Vehicles owned by people classified as poor will also be exempt.

As a result, toll stations, which collect the fee for the State budget, will eventually close.

The road-use fee was ratified earlier this year. It was planned to start collections on June 1, but this was delayed due to arguments that it would only bring a greater financial burden and not improvements in transportation. Last month, when the draft circular was once again discussed, transport organisations and individuals raised more concerns. — VNS

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