The Vietnamese government has asked the Ministry of Finance to promptly draft a decree on the 50-percent registration fee cut for locally manufactured and assembled cars.
The Government Office announced Vietnamese Deputy Prime Minister Le Minh Khai’s directive on the fee cut extension on Wednesday.
Accordingly, the Ministry of Finance was told to team up with other relevant agencies to complete a draft decree on the 50-percent registration fee reduction for domestically manufactured and assembled autos, coming into effect from July 1 to the end of 2023.
The order followed the ministry’s proposal on the car registration fee cut.
The six-month car registration fee cut will lower the state budget revenue by an estimated VND8-9 trillion (US$343-386 million), according to the ministry.
To boost consumption and support local auto manufacturers and assemblers, the government halved car registration fees twice, with the first spanning the second half of 2021.
The second cut was applied in the first half of 2022.
The Ministry of Finance said that it had proposed a 2023 aid package worth VND186.5 trillion ($8 billion) to waive or reduce taxes, and extend tax payment deadlines to support residents and enterprises, including local automakers and assemblers, amid ongoing global uncertainties that affect Vietnam's economic growth.