Up registration fee declines luxury vehicle purchasing power

The Ministry of Finance’s Decision 942, adjusting and supplementing the list of registration fees on automobiles and motorbikes, has sharply increased the prices of high class vehicles and strongly reduced purchasing power.

High class cars prices increase by billions of dongs after the Ministry of Finance issued Decision 942 (Photo: SGGP)

High class cars prices increase by billions of dongs after the Ministry of Finance issued Decision 942 (Photo: SGGP)

In HCMC, motorbike shops in Phu Nhuan crossroads and An Duong Vuong street said that the purchasing power of high grade products had dropped by 50 percent.
Mr. Nguyen Van Toan, owner of a shop in An Duong Vuong street, said that the fee change had most affected high class lines such as SH, Air Blade and Honda Vision after registration fees went up by tens of millions of dong.
The new fee levels have rocketed the price of SH 150 CBS by VND19 million (US$837)  to VND101 million, SH ABS by VND24 million to VND114 million.
Similarly in the auto segment, the new calculation by the ministry has raised the fee up to 12 percent in Hanoi and 10 percent in HCMC. Many luxury lines have to pay an extra of billions of dong.
A McLaren 650S Spider now bears VND2.2 billion ($97,000) of registration fee in HCMC and VND2.6 billion in Hanoi. The fees on a Bentley Flying Spur and McLaren 570S are VND1.9 billion and 1.2 billion in HCMC.
The General Department of Taxation said that the fee change is periodical in line with vehicle prices in the market, aiming to ensure price equality among vehicle types and manufactures.
In Decision 942 issued on May 24, the Ministry of Finance supplements registration fees on lines that have not been added in the price list of the ministry before.
They comprise 135 types of import automobiles of nine seater and less; 19 types of locally assembled automobiles from and less than nine seater; two import electric automobile lines; two locally made types of four wheel vehicles; 29 import and 127 locally made motorbike lines.

By LAC PHONG, CHI KAN – Translated by Hai Mien

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