MoF rejects VAMA’s proposal to reduce auto registration fee by 50%

Automobile market in May –Inching up slowly, still in inventory

The Ministry of Finance requires VAMA members to comply with current provisions on registration fees. Photo: Internet.

The MoF has responded to the VAMA’s proposal on additional support policies for businesses affected by the Covid-19 pandemic.

Regarding the proposal to reduce auto registration fees by 50%, the MoF said the ministry had taken measures to support businesses and citizens, including those in the automobile manufacturing and assembly industry affected by Covid-19.

It has asked the Government to issue Decree No.41/2020/ND-CP extending the deadline for payment of taxes and land use fees, Decree 109/2020/ND-CP extending the deadline for payment of special consumption tax for cars manufactured or assembled locally, Decree 70/2020/ND-CP reducing registration fee by 50% for cars manufactured or assembled locally by December 31, 2020 and Decree No. 52/2021/ND-CP extending the deadline for payment of VAT, corporate income tax, personal income tax and land use fees in 2021.

After reviewing support policies, the MoF sees the proposal to reduce auto registration fees by 50% is not consistent with the current setting. It requests VAMA members to comply with current regulations on registration fees.

Regarding the proposal to reduce the output for cars manufactured or assembled under the tax incentive programme, the MoF said amid the reduction in special preferential import tax rates under the ATIGA for car to 0% from January 1, 2018, to support the development of the domestic automobile industry, the tax incentive programme for auto manufacturing and assembly is supplemented in Decree No.125/2017/ND-CP amending and supplementing Decree No.122/2016/ND-CP, which takes effect from November 16, 2017 to December 31, 2022.

Recently, Decree No. 57/2020/ND-CP amends some regulations of Decree No. 122/2016/ND-CP and Decree No.125/2017/ND-CP on the tax incentive programme for car manufacturing and assembly, including: supplementing types of electric, fuel-cell, hybrid, fully biofuel, and natural gas cars subject to the import tax incentive programme to promote the development of environmentally friendly vehicles and amending of regulations on vehicle models and simplifying related administrative procedures.

Amending the minimum general output criteria of vehicle groups and minimum specific output of auto models to suit the current status of the automobile manufacturing and assembly industry amid the Covid-19 pandemic and be consistent with the industry’s development strategy and planning, including forecasting factors in the future.

The Ministry of Finance will update data and production situation of domestic automobile manufacturing and assembling enterprises, and developments, the impact of the pandemic to coordinate with ministries and agencies to suggest appropriate policies to boost the development of the domestic automobile industry.

The Ministry of Finance requests VAMA members comply with the provisions of Decree No. 57/2020 / ND-CP.