Draft Decree on reduction of registration fee

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According to this draft, the first-three time registration fee rate for cars, trailers or semi-trailers pulled by cars and similar vehicles which are manufactured and assembled domestically is equal to 50% of the registration fee rate for these vehicles stipulated in the Government's Decree No. 20/2019 / ND-CP of February 21, 2019 amending and supplementing a number of articles of Government’s Decree No. 140/2016 / ND-CP dated October 10, 2016 on the registration fee and the decisions of the People's Committee of provinces and centrally run cities on the registration fee rate from the effective date of this Decree until December 31, 2020.

From January 1, 2021, the registration fee rate for cars specified in Article 1 continues to comply with the rate specified in the Government’s Decree No. 20/2019 / ND-CP dated February 21, 2019 amending and supplementing a number of articles of the Government's Decree No. 140/2016 / ND-CP of October 10, 2016, on registration fees.

Speaking at the Government's regular meeting in June 2020, Deputy Minister of Finance Vu Thi Mai said that the Government's Resolution also allowed the ministries and sectors to submit the Decree for guidance according to the simplified process. The new resolution issued on May 29 with a lot of contents related to ministries, sectors and the Ministry of Finance also has a lot of urgent contents and documents.

“The Ministry of Finance has issued documents to guide the relevant agencies to complete the documents for internal consultation, and then the draft decree will follow the processes of ministries and sectors and then be submitted to the Government members. The Ministry of Finance will try its best to promulgate the Decree as soon as possible,”said Deputy Minister Vu Thi Mai.

In particular, answering the question of whether to retroactively reduce the registration fees while waiting for the Decree to be issued, the representative of the Ministry of Finance said that the Government requested a 50% reduction of registration fees to stimulate consumer demand, the drafting decree agency suggested that it should not be retroactive.

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"If there is a regulation on retroactivity, it will have to return the money to those who bought cars before the time of the Decree. This is complicated, unreasonable and has no effect on stimulating consumer demand. Therefore, this 50% reduction of registration fee will be effective from the signing date for promulgation of the guiding decree,” said Deputy Minister Vu Thi Mai.