50% reduction in registration fees for domestically produced and assembled cars

On May 29, the Government just issued Resolution 84 on solutions to remove difficulties for production and business, promoting disbursement of public investment capital in the context of Covid-19.

At the same time, special consumption taxes on domestically produced and assembled cars arising from March will also be extended until the end of 2020. The Government assigned ministries and branches to research and amend consumption tax regulations.

Reducing the registration fee does not help reduce the price of the car, but it will reduce the costs of keeping the car rolling.

The Government’s Resolution takes effect immediately from the date of signing.

Workers at Vinfast Auto Factory check vehicles before leaving the factory.

The proposal to reduce registration fees by 50% for domestically produced and assembled vehicles was made by the Ministry of Industry and Trade in April when car consumption dropped sharply, up to 40% in the first 4 months of this year due to Covid-19.

In addition to policies to stimulate the domestic auto market, Resolution 84 of the Government also provides a series of solutions to support and overcome other difficulties.

In the field of monetary payment, the Prime Minister agreed to pilot the approval of using telecommunications accounts to pay for small value goods and services (Mobile money).

For the aviation industry, aviation businesses are exempt from guarantee fees arising in 2020 with loans guaranteed by the Government, with outstanding debt until December 31, 2019;

Enterprises are allowed to account contributions and support for Covid-19 prevention and control as reasonable deductible expenses when calculating corporate income tax.

Also in this Decree, the Government requires ministries, branches and localities to cut 70% of conference and business expenses at home and abroad (except for the Ministry of Public Security, National Defense, Health, and funds for organizing programs).

In addition to policies under the Government’s decision-making authority, the Government also submitted to the National Assembly Standing Committee and the National Assembly to consider reducing the environmental protection tax on aviation fuel by 30% until the end of 2020;