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Auto industry cheers fee cuts

Update: December, 28/2012 - 10:47


A Ford auto showroom in Thanh Xuan District in Ha Noi. The Government plans to reduce road use and registration fees next year. — VNS Photo Truong Vi
HA NOI (VNS)— In a positive sign for the domestic automobile industry, the Government and Ministry of Finance proposed cancelling road-user taxes and slashing registration fees next year.

At a teleconference between Government leaders and heads of cities and provinces early this week, Deputy Prime Minister Hoang Trung Hai said the Government would help drivers by canceling the road-user tax for personal vehicles in 2013. Additionally, vehicle registration fees would be cut from the current rate of 20 per cent to 10 per cent for cars with 10 seats or fewer.

According to the Finance Ministry, further studies needed to be conducted on road-user taxes and fees to ensure both efficiency and public support.

The sluggish car market in 2012 has been attributed to the global economic turmoil, which leaves consumers with limited cash disposable income. Early this year, registration and plate number fees hit their highest levels, driving the domestic car market further into gloom. If taxes and fees are not adjusted, experts say, there will be a negative impact on the automobile market next year, especially in the field of transportation.

A representative from General Motors Vietnam Co Ltd (GM Vietnam) said the suggestion to slash taxes and fees levied on automobiles would boost car sales. If it were not implemented, automobile manufacturers would face more difficulties in 2013. — VNS

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