Hanoi hikes vehicle registration fees by 10 times

The Hanoi authorities have officially hiked the license plate registration fees for cars and motorbikes by 10 times in a bid to reduce traffic congestion in the capital.

Accordingly, as of January 1 next year, cars with less than 10 seats that are not used for passenger transportation purposes have to pay VND20 million (US$960) for a new number plate, instead of the current rate of only VND2 million.

Trucks and cars with more than 10 seats that are not used for passenger transportation, and trailers will have the new fees of VND500,000 and VND200,000, respectively.

Motorbikes number plate registration fees will be adjusted depending on their values.

Specifically, bikes worth less than VND15 million will have to pay VND500,000 for license plate registration. Those whose values are between above VND15 million and VND40 million will enjoy a fee of VND2 million, and those of higher values, VND4 million.

Earlier on December 8, the Hanoi People’s Council also issued a new resolution, giving the green-light to a proposal to hike the cap of car registration fees to 20 percent from the current 12 percent, a move it hoped will help limit private vehicles.

Following the resolution issuance, the city’s auto market has heated since people scrambled to buy cars before the new cap is to take effect.

Figures from the Ministry of Finance show that at present, the average revenue from car registration fees nationwide reaches about VND7 trillion a year, accounting for 2.5 percent of the country's total state budget revenue.

The total collection of car registration fees is rising steadily in recent years.

In particular, from VND3.363 trillion in 2006 to VND5.636 trillion in 2007, VND7.363 trillion in 2008, VND7.565 trillion in 2009, and VND9.209 trillion in 2010.