According to the Ministry of Finance, in order to implement the Party and State’s guidelines on rearranging local administrative units (merging provinces and communes; eliminating the district level), it is necessary to review and amend certain provisions of Decree No. 10.

Proposed elimination of the 5% registration fee for motorcycles in cities

Under the current regulations, the registration fee for motorcycles may vary depending on the locality. There are 6 centrally-controlled municipalities and 83 provincial cities and towns where the provincial People’s Committee is headquartered, and the registration fee for motorcycles is 5% for first-time registrations. In other areas, the registration fee is 2% of the vehicle’s value.

In this amendment, the Ministry of Finance proposes a unified registration fee of 2% for first-time motorcycle registrations nationwide; for second and subsequent registrations, a fee of 1% is applied.

According to the Ministry of Finance, the rearrangement of administrative units will involve the elimination of the district level and the merger of communes and wards. As a result, the administrative boundaries of communes and wards within provincial cities and towns as specified in Decree No. 10 will change.

With the proposed rearrangement of provincial-level administrative units, Vietnam is expected to have 34 provincial-level units. Some provinces will be merged into centrally-controlled municipalities, such as Hai Duong into Hai Phong and Quang Nam into Da Nang.

The Ministry of Finance points out that if the current regulations on calculation and collection of registration fees are applied, residents in provinces (except provincial cities) that are merged into centrally-controlled municipalities will have to pay a higher registration fee (an increase of 3%) when registering their motorcycles.

Currently, all 6 centrally-controlled municipalities have been authorized by the National Assembly to allow their People’s Councils to adjust the levels or rates of fees and charges (within the central government’s jurisdiction) if necessary.

Therefore, the draft decree proposes eliminating the 5% registration fee for motorcycles in cities. Specifically, it suggests amending and supplementing Point 4, Article 8 as follows: “Motorcycles: The fee is 2%. For motorcycles paying the registration fee for the second time and subsequent times, a fee of 1% is applied.”

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