The Ministry of Finance has just sent a document to the Prime Minister, Deputy Prime Minister Le Minh Khai regarding the issue of registration fee incentives for cars manufactured and assembled domestically.
Accordingly, the Ministry of Finance proposed that in the current context, there is no question to continue implementing the preferential registration fee policy for domestically manufactured and assembled cars.
Explaining this, the Ministry of Finance stated that, according to Resolution No. 31/NQ-CP dated March 7, 2023 of the Government at the Government’s regular meeting in March 2023, the macro-economy was basically stable, inflation is controlled, major balances of the economy are ensured. The main sectors and fields of the economy continued to tend to recover, stabilize and develop. At the same time, now that the COVID-19 epidemic has been controlled, it is not appropriate to continue reducing the registration fee for domestically manufactured and assembled cars at the present time.
On the other hand, in order to be timely and proactive in the implementation of socio-economic development goals in 2023, the Ministry of Finance will focus on researching and implementing a number of solutions such as extending the deadline for paying value tax. incremental, corporate income, personal income and land rent; land rent reduction in 2023; continue to reduce environmental protection tax on gasoline, oil and grease applied in 2023… Accordingly, businesses in the automotive sector are also entitled to this policy.
Previously, in order to contribute to supporting the domestic automobile manufacturing and assembling industry to recover production and business in the face of complicated developments of the COVID-19 epidemic, on the basis of proposals from associations, businesses and only Under the guidance of the Prime Minister, the Ministry of Finance has developed and submitted to the Government for promulgation Decree No. 70/2020/ND-CP dated June 28, 2020 to reduce 50% of the registration fee for manufactured cars. domestic production and assembly (effective from June 28, 2020 to the end of December 31, 2020).
By May 2021, the COVID-19 epidemic broke out once more, many production and business industries were interrupted, the risk of supply chain disruption strongly hindered the recovery and economic growth of our country. As a result, the domestic automobile manufacturing and assembling industry suffered serious damage, and the number of cars consumed decreased sharply. The Ministry of Finance has developed and submitted to the Government for promulgation Decree No. 103/2021/ND-CP dated November 26, 2021, further reducing the registration fee by 50% for domestically manufactured and assembled automobiles. (effective from December 1, 2021 to the end of May 31, 2022).
From June 1, 2022, the registration fee for domestically manufactured and assembled automobiles shall comply with Decree No. 10/2022/ND-CP dated January 15, 2022. Accordingly, the registration fee for domestically manufactured and assembled cars is equal to the registration fee for cars of the same type.
The Ministry of Finance said that the adjustment and reduction of 50% of the registration fee for cars manufactured and assembled in the country in the past time has basically achieved the goals set out when promulgated; have a positive impact on consumers, manufacturers, and distributors of automobiles in particular and the economy in general; contribute to financial support for people and businesses by directly reducing costs when registering to own a car; stimulating demand, promoting people and businesses to purchase domestically manufactured and assembled cars to serve consumer and production needs; This tax reduction policy contributes to creating jobs, increasing incomes for workers, ensuring social security, and has a spillover effect to other economic sectors. and promote economic growth following the COVID-19 epidemic.
In addition to the achieved results, the policy of reducing the registration fee by 50% for domestically manufactured and assembled cars is considered to have a negative impact on the implementation of international commitments. It has been suggested that this policy may not fully comply with the provisions of the National Treatment principle within the framework of the World Trade Organization (WTO) and free trade agreements (FTAs). ). Currently, Vietnam has joined the WTO and signed many bilateral and multilateral FTAs; in which, has committed to implement the principle of national treatment in trade and investment.
Currently, tax, fee and charge policies in legal documents are applied uniformly between domestically produced goods and imported goods. If the policy of continuing to implement the policy of reducing the registration fee rate by 50% for domestically manufactured and assembled automobiles, WTO member countries can recognize the reduction in the registration fee rate for manufactured and assembled cars. domestic production and assembly as a subsidy from the Government and Vietnam may receive requests for explanation from some countries that do not have domestic automobile manufacturing and assembly activities in Vietnam.
Therefore, in case it is necessary to reduce the registration fee for cars, it must be applied to both domestically manufactured and assembled cars and imported cars. This will lead to a decrease in state budget revenue from registration fees, affecting the budget balance of localities, especially in the condition that this is a revenue where the local budget enjoys 100% of the revenue. according to the State Budget Law.
When formulating Decree No. 70/2020/ND-CP and Decree No. 103/2021/ND-CP, in the appraisal reports, the Ministry of Justice pointed out that the regulation of 50% reduction of the fee before The registration of domestically manufactured and assembled cars is only temporary, but it can be considered as tax discrimination between domestically manufactured and assembled cars and imported cars. Accordingly, the Ministry of Justice proposed the Ministry of Finance to review international commitments, thereby reporting to the Government for consideration and decision.
On that basis, when submitting to the Government for promulgation a policy to reduce the registration fee by 50% for domestically manufactured and assembled automobiles, the Ministry of Finance submitted to the Government that if this policy is applied, it will only consider This is a short-term support solution to remove difficulties and obstacles for the domestic automobile manufacturing and assembly industry in the face of the negative impacts of the COVID-19 epidemic when the supply chain is broken.
Also in this document, for the proposal to continue extending the excise tax on domestically manufactured and assembled cars in 2023, the Ministry of Finance proposed that the application period should not be prolonged. In case of application, the Ministry of Finance proposes to apply as in Decree No. 32/2022/ND-CP. Specifically, extending the tax payment deadline for payable excise tax amounts arising in the tax period of June, July, August and September 2022 for domestically manufactured and assembled automobiles no later than November 20, 2023. With this option, the total excise tax on domestically manufactured and assembled cars will be extended from VND 10,400 to VND 11,200 billion. If allowed by the Government, the Ministry of Finance shall submit to the Government for permission to develop a decree to extend the deadline for paying excise tax on domestically manufactured and assembled cars in 2023 according to a shortened order and procedures. .
