Workers are seen checking a car. The Ministry of Finance has rejected a proposal to halve the registration fee for new cars - PHOTO: VNA

HCMC - The Ministry of Finance has rejected a proposal by the Vietnam Automobile Manufacturers Association (VAMA) to halve the registration fee for new cars, saying the proposal is not feasible under the current situation.

VAMA had earlier suggested halving the registration fee for new cars to remove obstacles facing the auto market triggered by the Covid-19 pandemic.

According to the Ministry of Finance, the Government has issued many policies to ease the difficulties facing enterprises, organizations and household businesses, including those in the auto assembling and manufacturing sector. Specifically, the deadlines to pay taxes and land rents have been extended, while the registration fee for locally assembled or manufactured cars was halved until the end of last year.

The ministry will get updates on the performance of auto manufacturers and assemblers and the impact of the pandemic on them. It will also coordinate with the relevant ministries and agencies to propose appropriate policies to boost the development of the domestic auto sector.

In late June last year, the Government issued a decree to halve the registration fee for locally assembled or manufactured cars to support auto firms struggling with the Covid-19 pandemic and local buyers.

According to the Ministry of Finance, the policy resulted in a decline of VND6 trillion in the State budget revenue last year.