From now on, late traffic violation fines will incur interest.

Starting from 5/5/2023, individuals and organizations who commit administrative violations (including traffic violations) will be subject to a daily late penalty interest of 0.05% on the total amount of fines.

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The Ministry of Finance has issued Circular 18/2023, effective from May 5, 2023, which regulates the procedures for collecting and remitting fines, offsetting the difference in penalty amounts, issuing penalty receipts, and allocating funds from the state budget to ensure the operations of enforcement agencies for administrative violations.

Accordingly, individuals and organizations that commit violations will be enforced to pay the penalty decision when it exceeds the deadline, and for each day delay in payment, an additional 0.05% will be charged on the total amount outstanding. The number of days late includes holidays, leave days according to the regime, and is calculated from the day following the last day of the penalty payment period until the date of payment into the state budget.

The collection of fines is based on the penalty decision of the competent authority. When paying directly at the State Treasury or commercial banks, the payer must present the penalty decision. If transferring funds, the payer must specify the content of the penalty payment and the decision number.

Traffic violators must pay their fines on time to avoid late payment charges from May 5, 2023

Regarding the determination of the time for calculating late payment charges, the Circular specifies that in cases where the penalty decision is handed over in person, the date for calculating late payment charges is 10 days after the deadline for enforcement as stated in the administrative violation penalty decision, counting from the date of receipt of the penalty decision.

In cases where the penalty decision is sent by post under security measures, the date for calculating late payment charges is 10 days (including holidays) after the deadline for enforcement as stated in the administrative violation penalty decision, counting from the date when the valid penalty decision is issued according to the regulations.

In addition, Circular 18 also stipulates that late payment charges for administrative violations shall not be calculated within the period of deferred enforcement of the penalty decision.

In administrative sanctioning for traffic violations, the rate of violations is quite high. For example, in handling alcohol concentration violations, in 2022, the nationwide traffic police force handled over 308,000 cases of violations.

According to the report of the Office of the Ministry of Public Security, just on May 2, 2023, the nationwide traffic police force handled 9,703 cases of violations of traffic safety regulations; fined over VND 20.87 billion; temporarily seized 168 cars, 4,426 motorcycles, and 18 other vehicles; revoked 2,166 driving licenses of all kinds.