VCN – The Government approved a reduction of half of registration fees when registering for automobiles manufactured and assembled domestically until the end of 2020 to stimulate domestic consumption. It still takes a certain period of time to comply with the process of law to make this regulation officially applied
|Automobiles manufacturing domestically will be reduced 50% of registration fees by the Government in order to support domestic enterprises to overcome difficulties caused by Covid-19. Photo: HP|
The Government has issued Resolution No. 84/NQ-CP on the tasks and solutions to continue removing difficulties for production and business, promoting the disbursement of public investment capital and ensuring social order and safety amid the COVID-19 pandemic.
Notably, the Government decided to reduce the registration fee by 50% when registering an automobile manufactured or assembled domestically by the end of 2020 to stimulate domestic consumption. This means that from January 1, 2021, the registration fee rate will return to its current level.
To put this decision of the Government into practice, according to regulation, the Ministry of Finance will draft and submit to the Government for promulgation a decree amending and supplementing Decree 140/2016/ND-CP of the Government dated October 10, 2016 on the registration fee or a resolution, which clearly states reducing 50% of registration fee rates compared to current regulations.
In addition, as the current registration fee rate applies to all vehicles, hence in this draft, the Government must also specify criteria for subjects eligible for a registration fee reduction. In this case, it is automobile manufactured or assembled domestically.
Normally, documents issued by the Government are valid after 45 days since the date of signing. However, most of the regulations for supporting difficulties urgently for businesses during Covid-19 pandemic are prioritised to take effect immediately, so it is likely the content of registration fee reduction will be valid right after the document is promulgated.
The Ministry of Finance is urgently drafting documents on specifying Resolution No. 84 to submit to the Government, including reduction of registration fees for automobiles.
By H.Vân/Thanh Thuy