Vietnam metro looks to increase car registration fees

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Ho Chi Minh City is considering increasing car registration fees to 15 percent of the sales price, the VnExpress newswire reported Thursday.

The report quoted an official with the city's tax bureau as saying that the bureau proposed that the rate can either be maintained at 10 percent, or increase to between 12 or 15 percent.

The proposal was made after the central government allowed local administrations to increase the registration fees to between 15 and 20 percent of the sales price, the report said.

If approved by the city's People's Committee, the new fees will be applied from October 15 in accordance with instructions the Ministry of Finance issued Wednesday, it said.

An official from the Hanoi tax bureau was also cited by the newswire as saying the capital city was yet to order an increase in car registration fees, because since 2008, Hanoi and Quang Ninh have already been charging registration fees of 12 percent while other localities were still maintaining them at 10 percent.

The quantum of increase, if it happens, will be lower than that of other localities, the official said.

According to the finance ministry, some VND7 trillion (US$366.5 million) are collected in vehicle registration fees every year on average, accounting for 2.5 percent of the state budget income.

Last year, registration fee revenues topped VND9.2 trillion ($442.3 million), the news source said.

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