Ministry of Finance: Many basics to increase Registration fee rate for pick-up trucks

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The trend of using pickup trucks is becoming more popular and they are used to transport people as other cars. Photo: Internet Sources.

In the initial draft Decree sent by the Ministry of Finance for comments at the end of August 2018, it proposed to stipulate that the first Registration fees rate for pick-up trucks with a capacity of less than 1,500 kg and 5 seats or less, and vans with a capacity of less than 1,500 kg is 60% for the first Registration fee rate for cars (in the bracket of 10-15%). The second Registration fee rate is 2%.

Among 79 comments received by the Ministry of Finance after the consultation period, the majority agreed with the proposal of the drafting agency. However, there are still some opinions that the basics for proposals to increase the Registration fees rate for pick-up trucks need to be specified, and the first Registration fee rate for this vehicle needs to remain at the current rate (2%).

For this issue, the Ministry of Finance said that as per the national technical regulation on traffic signs and signals QCVN 41:2016/BGTVT, the vehicles for the transport of goods with the capacity of less than 1,500 kg (including vans with the capacity of less than 1,500 kg), pick-up trucks with the capacity of less than 1,500 kg and 5 seats or less when they are in traffic, must comply with the traffic signs system as cars, are not limited on times for circulating in urban areas and are allowed to circulate into the lane for small cars.

However, the first Registration fees rate for pick-up trucks is 2%, while the first Registration fee rate for cars is from 10% to 15 %. Therefore, over the past time, there has been a high demand for organizations and individuals in using pick-up trucks.

According to statistics from the General Department of Vietnam Customs, the number of pick-up trucks sharply increased (28,482 units in 2017, increasing 8.7 times compared to 2012), in which, the number of pick-up trucks for transport of goods with the capacity of less than 1,500 kg and 5 seats or less accounted for 99.8% of the number of imported pick-up trucks.

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Moreover, the proposal for the increase in the Registration fee rate for pick-up trucks derived from Report No. 34/ BCT-CNNg dated 28th April 2017 of the Ministry of Industry and Trade which was reported to the Prime Minister on the assessment of production and assembly of Vietnamese automobiles and development solutions, has summarized the shortcomings, difficulties and recommendations of domestic automobile assembly and manufacturing enterprises on the current tax policy.

This report stated that “the policies on Special Consumption Tax, Import Tax and registration fee for pick-up trucks with the capacity of less than 1,500 kg and 5 seats or less have not yet been fair for cars with the same cylinder capacity or the number of seats, although these vehicles are applied a mechanism on management and circulation as cars”. Thus, the Ministry of Industry and Trade proposed the Prime Minister to assign the Ministry of Finance to increase the Registration fee rate for pick-up trucks.

In order to give further evidence of the proposal for the increase in the Registration fee rate, the Ministry of Finance said that at the meeting with relevant ministries, sectors and the Vietnam Automobile Manufacturers Association on car imports, Deputy Prime Minister Trinh Dinh Dung requested the Ministry of Finance to reevaluate the Registration fee rate for pick-up trucks and report to the Government for the timely amendment and supplementation in line with the reality and the usage purpose for these vehicles.

It also emerged from the fact that the trend of using pick-up trucks is becoming more popular and they are used to transport people as other cars, so the Ministry of Finance proposed to maintain the registration fee rate for pick-up trucks as the initial draft Decree to ensure fairness for other cars.