License Plate Fees Set to Rise Significantly in Vietnam
Jan. 5 – Vietnam will raise license plate registration charges up to VND20 million for cars with less than 10 seats in an attempt to reduce traffic in Ho Chi Minh City and Hanoi. The increase from the current VND2 million per vehicle would be effective beginning in February, the government said on Friday.
Vietnam’s Finance Ministry also plans to raise plate fees for motorcycles up to VND4 million per vehicle depending on its value. The current charge is VND500,000 per bike.
Director of the Ministry of Finance’s tax policy department Vu Van Truong told the Tuoi Tre newspaper on Friday that the decision to raise fees was spurred by proposals made by Ho Chi Minh City and Hanoi, two cities that are struggling to accommodate rapid growth in the usage of vehicles.
“To a certain extent, the fee hike will adjust (car) consumption and it is one of the measures to help reduce congestion in the two cities,” Truong said.
He noted that vehicles used by transport companies are not affected by the new fees.
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