License plate fees for cars in Hanoi will increase to up to VND10 million (US$476), five times higher than the current fees, VnExpress quoted Hanoi's tax agency as saying on Friday.
According to the proposal to be submitted for approval at the capital's lawmakers' session that will begin on December 7, new fee increases also have been planned for motorbikes, up to VND4 million.
Previously Ho Chi Minh City had proposed a ten-fold increase on both car license plate fees, or VND20 million, in an attempt to curb traffic congestion.
Both the country's largest cities are allowed to charge license plate fees between VND2 million to VND20 million per car, under a decision issued by the Ministry of Finance on Dec. 21, 2010, the newswire reported. The fees in other provinces and cities were set as low as VND200,000, it added.
Also to restrict personal vehicles in Hanoi and HCMC, the finance ministry recently agreed with the Ministry of Industry and Trade's proposal to increase car registration fees from the current 10 percent to 12 percent of the sales price to 20 percent of the sales price, VnExpress said.