The new calculation of registration fee is expected to reduce expenses for car buyers. — Photo

The Ministry of Finance has changed the way it calculates registration fees for new vehicles, a move expected to reduce expenses for car buyers.

The new calculation is expected to enter into effect on January 1, 2017.

According to a draft circular, the new calculation will be based on the cars’ list price, and will thus drop five per cent every two years, until ten years from the production date.

For example, if a new car version rolled out in early 2017 costs VND1 billion, the price of a new car of the same type but of an older version, made in 2011, will be VND850 million.

Nguyen Van Nghia, a resident of HCM City’s Thu Duc District, told local media that he recently bought an imported Toyota Camry produced in 2013, but its registration fee was calculated according to the new price of the same kind made in 2016. The car’s list price was VND2 billion and he had to pay a registration fee of 10 per cent of the car value, or VND200 million.

"Under the new calculation,’ he said, "if I buy the car early next year, I will have to pay only VND180 million for the registration fee. I can save VND20 million.”

“A buyer can save VND40-50 million which depends on the car value,” said Nghia.

The marketing director of Ford Vietnam, Truong Kim Phong, said the new calculation would benefit customers, especially if they buy imported cars that are more expensive.

The general manager of Lien A International Joint Stock Company, Nguyen Tan Trung, said a drop in registration fees would not only benefit customers but also auto companies. The auto businesses would have the opportunity to reduce the selling price and boost sales.

Insiders predict that 2017 will be a busy year for the automobile industry due to the reduced registration fee and lower tax of vehicles imported from ASEAN member states. — VNS