Consider a 30% reduction in road use fee for transportation business

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The annual revenue from road fees is about VN 9,000 billion. Photo: Internet

Revenue for road maintenance and repair

The collection and payment of road fees have been carried out following Circular No.293/2016/TT-BTC on the rate, collection, submission, waiver, administration and use of the road use fee and Circular No. 70/2021/TT-BTC replacing Circular No. 293/2016/TT-BTC.

According to the Ministry of Finance, the policy on the collection of road use fees has created a clear legal framework for the implementation of collection, submission, management and use of the fee. According to the Ministry of Finance statistics, the annual revenue from the fee is about VND9,000 billion, which is paid to the state budget and spent for road maintenance activities. In addition to the annual revenue from the fee, the State budget provides VND3,000 billion for the maintenance and repair of the road system managed by the State. As a result, the roadways are repaired in time, ensuring a smooth, safe and effective road system, contributing to economic growth and helping reduce natural disasters, ensuring national defence and security, and improving people's living standards.

However, besides the achieved results, there are some problems regarding the subject of the fee, charging and collecting the fee for vehicles of state agencies, non-business units change of the collector for cars of the police and defence forces. To solve the above problems, the Ministry of Finance has issued a replacement circular, and so far, no problems have arisen.

The Ministry of Finance says that the issuance of a new Decree is necessary to ensure that the road user fee policy is consistent with the law on road traffic, ensuring that the road user fee policy is open, transparent, feasible and suitable to reality, creating favourable conditions for people and businesses. In addition, the new decree aims to stabilize the state budget revenue from road use fees to maintain the road system managed by the State.

Propose to reduce the road use fee by 30% for passenger cars

The Ministry of Finance has completed the draft Decree stipulating the rate, collection, submission, waiver, administration and use of the road use fee.

According to the draft Decree, following the Government's policy of reducing taxes and fees to support people and businesses in the current conditions, the Ministry of Finance proposes the Government reduce the road use fee by 30% for passenger vehicles and 10% for the road use fee for goods transport vehicles. The reduction period is six months from the effective date of this decree. This reduction in 2023 will reduce revenue by about VND390 billion. However, there is still about an annual revenue of VND9,000 billion from the road use fee and VND3,000 billion funded by the State budget for road maintenance and management.

According to the Ministry of Finance, the road network in operation is 668,750 km long, so the demand for regular and periodic maintenance is great while resources are limited, leading to rapid deterioration of the road system and causing traffic insecurity affecting the travel of people.

Regulations on waiver of the road use fee for a number of priority subjects (ambulance, fire engine, funerals, etc.) will help ensure the implementation of policies of the Party and State on social welfare, national security, social order and safety. In addition, regulations on free charges for vehicles which have not been used on the road in a certain time will ensure fairness for organizations and individuals using vehicles to participate in traffic.

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According to the Ministry of Finance, the 30% fee reduction for passenger transport business vehicles and 10% fee reduction for goods transport business vehicles will contribute to supporting transport business activities, and reduce transportation costs, thereby lowering production and business costs and commodity prices and increase competitiveness for Vietnamese goods.