REGISTRATION FEES FOR PICK UP: EACH LOCALITY APPLIES A DIFFERENT RATE (!)
(Dan Tri) – Types of pick up in Vietnam market such as Ford Ranger, Mitsubishi Triton, Toyota Hilux … have currently been applied many registration fees in many different localities. Even in the same city/ province, the registration fee for them is also not the same.
How much does consumer have to pay for a pick-up ‘s registration fee?
Currently, the cargo pick-up (the name stated in the instructions letter about registration fee by General Department Tax) or truck (double cabin pick-up) (the name on the Type Approval Certificate for Automobile issued by Vietnam Register) like the above model have still been being applied the different registration fee in many provinces and cities nationwide. For example, in Hanoi, the registration fee is applied for pick up is 2%, while HCM city and other provinces shall be charged from 10% – 20%.
According to information from members of Vietnam Automobile Manufacturers Association (VAMA), specific registration fee for pick-up in some provinces has the difference as follows:
Which mistake? Why?
The question is: Why have some localities applied registration fee of 2% for pick up like the truck but other provinces charge the rate range between 10-20% of passenger vehicle for pick up? In order to answering this issue, we have to review official letter which regulated about this model.
On Mar 5, 2012 General Department of Taxation issued Official Letter 2824/BTC-TCT which clearly explained registration fee policy for pick up that had been assigned in Circular Letter 124/2011/TT-BTC on 31/Aug/2011 of MOF (“Letter 2824”): “…kinds of automobile which regulated at Issue 5, Article 6, Chapter II, Circular 124/2011/TT-BTC is applied registration fee of from 10% to 20% includes: Passenger car, pick up and van used to transport passenger which have from 4 seats to under 10 seats with driver.
So, if the above models can be proved that they are pick up transporting cargo (not within the scope of registration fee of 10%-20% for passenger vehicle) which mentioned as Letter 2824 will be applied registration fee of 2% like truck.
However, in reality, many tax departments at many provinces / city still refuses to 2%. Because of the inconsistency between tax departments in the city / province, Vietnam General Department of Taxation had to issue a written reply 1830/TCT-CS problems of the Tax Departments of Thua Thien Hue, according to dispatch 2328/CT-THNVDT. It was also general questions of many tax departments about applying registration fee for the listed above vehicle. Nevertheless, the written reply of the General Department of Taxation was still directed again to the regulation by the Ministry of Finance and Ministry of Science and Technology about how the passenger pick-up is (OF 2431/QD-BKHCN) as well as the rates prescribed by the Ministry of Finance for this model (2824/BTC-TCT), then giving final “judgment” for the above models.
Which purpose of this vehicle is verified: passenger or cargo?
Not satisfied with the guidelines of the General Department of Taxation, VAMA members, namely the brands related directly, such as Toyota, Mitsubishi …, together with the Alternate President of VAMA (Director of Ford Vietnam) had a written proposal to the Ministry of Finance on applying registration fee of 2% for pick up due to as the issued regulation, the above listed vehicle are cargo pick-up, be not passenger cars ( will be charged the registration fee of 10-20% depending on the province / city).
VAMA members said that in “Certificates of quality and technical safety and environmental protection for vehicles imported” which issued by the Vietnam Register for this model, at the issue “Type of vehicle (Vehicle’s type ) “wrote ” Truck” (double cabin pick-up) “. This type of vehicle is in accordance with five criteria pick up freight cars / trucks which specified in Issue 3.2.7. & 3.2.8 of the 2nd Amendment of ISO 7271:2003 in 2010 on the classification of vehicles that Vietnam Register took as a basis for classification of vehicle types.
These criteria include: having cargo space (open or closed) are arranged (including the associated body or not associated body), doors for loading/ unpacking, cabin seat layout, cargo area is larger than 1m2. In addition, the total volume of goods for transport must be greater than 80% of the total volume of seating capacity (each person’s weight is 65kg converted). Therefore, with the number of seats is 5 and capacity are allowed to carry as the Certificate of technical safety and environmental protection for imported motor vehicles, all Ford Ranger (with cargo capacity of 692kg as design), Isuzu D-Max (665kg), Mitsubishi Triton (740kg) … satisfy the above requirements.
After suffering from plan of collecting toll of personal means property causing adverse effect for the entire market as well as Vietnam’s automobile industry, VAMA members continue to struggle to reach a consensus for pickup’s registration fee. This 2012 was really a memorable year for VAMA, after many years VAMA “earned from a cash cow”.
(Source: dantri.com.vn, Translated by Isuzu Vietnam)