Vietnam PM defers proposed vehicle fees

TN News

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The proposed road maintenance fee will be deferred to next year while there will be more studies before the personal vehicle fee is introduced, the Vietnamese government has said.

Vu Duc Dam, a minister in the Government Office, told reporters on May 4 that Prime Minister Nguyen Tan Dung has decided to postpone introduction of the road maintenance fee from June this year to January 2013.

"The ministries will have to reconsider the impacts of this fee.

"The fee proposal will be reconsidered before submitting to the National Assembly for approval."

In a recent decree on Road Maintenance Funds the PM said the fees would be collected every year without specifying the amount.

The Ministry of Transport's proposal was for collecting monthly or annual fees directly from vehicle owners or by adding a levy on gasoline and diesel.

Under the first option, the ministry wanted car owners to pay VND180,000-1.4 million (US$8.6-67) a month and motorbike owners, VND80,000-150,000.

The ministry also proposed the personal vehicle fee as part of efforts to clear clogged streets in major cities.

Motorbike owners in five centrally-administered cities -- Hanoi, Ho Chi Minh City, Da Nang, Can Tho, and Hai Phong -- would have to pay VND500,000-1 million a year and cars, VND20-50 million.

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