Vietnam to Triple Car Registration Tax to Curb Inflation

Vietnam will triple car registration taxes in Aug this year from current 5 per cent in an effort to curb galloping inflation and reduce traffic congestion.

 

Under the Decree No.80/2008/NNÄ-CP signed by the prime minister July 29, cars with less than 10 seats will be charged with registration fees of 10 per cent-15 per cent instead of 5 per cent, while registration fees of cars with 10 seats and more, trucks and motorbikes will remain unchanged, at 2 per cent-5 per cent.

 

Local authorities will set suitable registration fee levels for their localities, according to the decree, which will become valid 15 days after appearing in the official gazette.

 

Coupled with import tariff increase to 83 per cent from 70 per cent, local car traders will much likely face a hard time, the paper said, citing dealers.

 

Huynh Du An, general director of Euro Auto, the distributor of BMW brand name cars, said a 5-seat BMW 320i now has the sale price at US$79,900/unit. With the new registration fee, clients in Hanoi and HCM City will have to spend nearly US$12,000 for the BMW 320i, or US$8,000 more than currently.

 

Meanwhile, buyers registering cars in other localities will have to pay US$8,000/unit or US$4,000 more than currently, he said.

 

Similarly, clients in Hanoi and HCM City will have to pay a registration fee of US$7,500/unit for a 2.2L Santa Fe, oil engine CRDi, 7 seats, which is now selling at US$50,000, while clients in other localities will have to pay US$5,000 instead of US$1,000.

 

As for locally-made cars, a Honda Civic 2.0AT i-VTEC, which has the sale price of VND611.7 million, will have the registration fee of VND91.7 million or VND60 million more than the current level, if registered in Hanoi or HCM City; and VND61,170,000 more if registered in other localities, VND50 million more than the current level.

 

Vietnam’s car imports in the first seven months surged 199.4 per cent to US$1.83 billion, with the volume of fully assembled vehicles jumping 265.1 per cent to 43,500 units, government figures show. (Young People, Vietnam Economic Times)