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Finance ministry calls for higher fees on pickup trucks and vans

Update: September, 04/2018 - 17:52
The Finance Ministry has proposed raising the registration fees for pickup trucks and vans. — Photo Ford Vietnam
Viet Nam News

HÀ NỘI — The Ministry of Finance has proposed an increase in the registration fees for pickup trucks and vans with carriage capacities of less than 1,500kg and fewer than five seats in order to ensure fairness for cars with fewer than nine seats.

The fee for pickup trucks and vans, registered for the first time, is only 2 per cent of the value of the vehicle, while cars with nine seats or fewer face fees of 10-15 per cent, depending on the locality in which they’re registered.

This is one of the points in a draft report sent to the Government proposing amendments and supplements to a number of articles in the Government’s Decree No. 140/2016 /NĐ-CP on vehicle registration fees.

In the draft, the ministry proposes that the fee for these vehicles will be equal to 60 per cent of the first registration fee for cars with nine seats or fewer. Meanwhile, the second registration fee rate, applied when the vehicle is sold, will be 2 per cent of the value of the vehicle.

According to the finance ministry’s statistics, the number of pickup trucks, including imported and domestically manufactured models, increased rapidly each year between 2012-17.

The number of vehicles imported and manufactured domestically in 2012 was 3,305 units, and doubled to more than 6,900 units in 2013. By 2017, this number has reached 28,911 units. On average, the number of cars imported and manufactured domestically each year is 16,383 units.

In fact, pickup trucks with transport capacities of less than 1,500 kg and five seats or fewer are used to carry passengers as well as cargo. Meanwhile, other trucks are used to only carry goods.

The ministry also points out that vehicles identified as cars follow road regulations that also include pickups and vans.

“Accordingly, pickups and vans enjoy no restrictions on the time allowed to circulate in urban centres and are permitted to travel in car lanes," said the ministry in the draft.

With a pickup truck worth about VNĐ600 million (US$25,690), buyers currently pay a registration fee of 2 per cent, equivalent to VNĐ12 million. If the draft decision is approved, the buyer will have to pay about VNĐ54 million for the first registration, the highest ever level, about 4.5 times higher than the current rate. — VNS

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