Further extending reduction period for 29 kinds of fees and charges until June 1, 2021, except car registration fee

	Reduce 50% of registration fees – a stimulus for domestic cars till the end of 2020
	General Department of Taxation reduces 50% registration fees for domestically manufactured cars
	Review and cut taxes and fees related to import and export goods

Illustrative photo. Source: internet

In 2020, the Covid-19 pandemic had a great impact on all aspects of life and socio-economic factors. The Party and State issued many guidelines and solutions to mitigate the impact of the pandemic and made best efforts to perform "dual goals" of promoting production and business, creating a thrust for the economy and ensuring people's lives while controlling the pandemic.

Following the above policy and regulations on fees and charges, the Ministry of Finance worked with other ministries and ministerial-level agencies to review and issue 21 circulars on fees and charges to support and remove difficulties for business and production, ensuring social security in response to the Covid-19 pandemic. Accordingly, the reduction period for 29 fees and charges will last until December 31, 2020.

It is forecast the global economy in 2021 will continue to be seriously affected by the Covid-19 pandemic, which will weaken investment flow, trade, human resources, supply chains and greatly affect the psychology of consumers. The domestic socio-economic conditions are still tough and some sectors are still heavily influenced by the Covid-19 pandemic such as tourism and aviation.

To continue supporting businesses and people affected by the pandemic on November 20, the Ministry of Finance consulted Prime Minister Nguyen Xuan Phuc for guidance on the policy of extending the reduction period for fees and charges which were revised down in 2020 (in 21 circulars of the Ministry of Finance) until the end of June 30, 2021.

Approved by the Prime Minister, on December 29, the Ministry of Finance issued Circular No. 112/2020 / TT-BTC regulating the rates of charges and fees to support and remove difficulties business and production, ensuring ensure social security in response to the pandemic.

Accordingly, from January 1, 2021 to the end of June 30, 2021, 29 fees and charges will be reduced 50-100%.

Among fees and charges applying the extended reduction period, there is no car registration fee, meaning the reduction of the car registration fee will end on December 31, 2020.

EuroCham proposes 50% cut in registration fee for imported cars

From 1 July 2021 onwards, the rates of fees and charges specified in the above schedule shall comply with the initial circulars.