Proposed 30% Reduction in Vehicle Registration and License Plate Fees

This document is poised to replace existing regulations on vehicle registration fees. The most notable aspect of the draft is a proposed 30% reduction in current fees. If approved, this policy will directly impact car registration costs and motorcycle registration costs for individuals and businesses starting in 2026.

According to the Ministry of Finance, the current fees for vehicle registration and license plate issuance are governed by Circular 60/2023, amended by Circular 71/2025. However, Decision 1891, which approves the plan to reduce and simplify administrative procedures in production and business under the Ministry of Public Security’s purview, mandates a 30% reduction in vehicle registration fees across provinces and centrally-governed cities.

To implement this directive and based on the Ministry of Public Security’s proposal, the Ministry of Finance has drafted a new circular to replace Circular 60/2023 and Circular 71/2025. The draft proposes a 30% reduction in fees for vehicle registration and license plate issuance, except for license plate replacement fees.

Specifically, for passenger cars with 9 seats or fewer, including pick-up trucks, the fee for new registration certificates and license plates in Zone I (Hanoi and Ho Chi Minh City) is expected to drop from 20 million VND to 14 million VND. This means a 6 million VND reduction for registrations in these two major cities. In Zone II, which includes all other localities outside Zone I and special administrative units under provincial governance, the fee is expected to decrease from 200,000 VND to 140,000 VND.

For motorcycles, the draft circular also proposes fee reductions based on vehicle value. For motorcycles valued up to 15 million VND, the fee in Zone I will drop from 1 million VND to 700,000 VND; in Zone II, it will decrease from 150,000 VND to 105,000 VND. Motorcycles valued between 15 million VND and 40 million VND will see fees reduced from 2 million VND to 1.4 million VND in Zone I, while Zone II will maintain a 30% reduction, dropping from 150,000 VND to 105,000 VND. For motorcycles valued over 40 million VND, the fee in Zone I is expected to decrease from 4 million VND to 2.8 million VND; in Zone II, it will drop from 150,000 VND to 105,000 VND.

The draft also clarifies the principle of fee application based on location. Organizations and individuals with headquarters or residences in a specific zone will pay registration fees and license plate issuance fees according to that zone’s rates. In cases of license plate auctions, fees will be paid according to the zone chosen for registration and license plate issuance, in compliance with current regulations on vehicle registration.

For police-used vehicles registered in Zone I or at the Traffic Police Department (Ministry of Public Security), Zone I rates will apply. The value of motorcycles used to determine fees is based on the special consumption tax value at the time of registration.

According to the Ministry of Finance, if approved, the new circular is expected to take effect in 2026. The 30% reduction in registration and license plate issuance fees is anticipated to lower costs for individuals and businesses purchasing vehicles, aligning with broader administrative reform and business support initiatives.

TH (Tuoitrethudo)