The government believes domestic car producers have received enough support from the discount scheme, and so will not extend it.
The 50 percent discount scheme on the registration fees of cars produced domestically, which came into effect on June 28 this year, will not be continued, and will terminate on Thursday as planned, a leader of the Ministry of Finance’s Tax Policy Department said.
According to the ministry, the 50 percent discount on car registration fees had only been a short-term solution, solving difficulties for domestic automobile manufacturing and assembling enterprises facing impacts of the epidemic.
This policy has cost the state budget an estimated VND3.7 trillion ($160.56 million) in revenue, while embassies of car manufacturing countries such as Indonesia and Thailand, as well as the European Chamber of Commerce in Vietnam have approached the MoF to complain about discrimination between imported and domestically produced vehicles, the ministry said.
Meanwhile, fees and charges continuing to receive discounts include those in the fields of citizenship registration, road maintenance, food safety, project appraisal, healthcare, and securities trading.
The MoF said that the above policies have cost the state budget an estimated VND1 trillion this year.