Cars and motorbikes in downtown Ho Chi Minh City. Photo: Tan Phu
Ho Chi Minh City is planning to increase registration fees for cars and motorbikes by up to five times in September, saying this will help discourage use of personal vehicles and bring in more revenues.
The People's Committee recently submitted its proposal to the local legislative body, the People's Council, which is expected to vote on the plan at a sitting this month end.
Under the proposal, new personal cars with fewer than 10 seats are subjected to a fee of VND11 million (US$498), instead of VND2 million ($90.6) now.
For motorbikes, authorities want the fees to be raised to raise by 1.5 times. Those worth less than VND15 million ($679.5), for instance, are charged VND750,000 ($34). The fee surges to VND3 million for more expensive motorbikes.
Although the proposed increases were big, the new fees were still well within limits set by the Ministry of Finance in September 2013, the People's Committee was quoted as saying in its proposal.
Authorities also said the new fees were "suitable with HCMC economic conditions", adding that their proposal did not target public transport, which is always encouraged.
HCMC collected more than VND626 billion ($28.35 million) in vehicle registration fees in 2012-2013, about 80 percent of which from motorbikes of VND15-40 million, and 10 percent from cars, according to the People's Committee.