Decree 20/2019 brings significant changes to registration fees for pickup trucks and vans, directly impacting consumers and the Vietnamese truck market. This article from Xe Tải Mỹ Đình analyzes these changes, focusing on the impact of Pickup Truck Decree 20 on registration fees, helping you understand the new regulations and key considerations.
Decree 20/2019 and New Registration Fees for Pickup Trucks
Decree 20/2019 officially adjusts registration fees for certain types of vehicles, including pickup trucks (goods-carrying pickup trucks) and vans. A key aspect of this decree is the classification and application of new registration fees based on the vehicle’s payload and number of seats.
Specifically, according to Decree 20/2019, pickup trucks and vans with a permissible payload for traffic participation of less than 1,500 kg and with 5 seats or less will be subject to an initial registration fee equal to 60% of the registration fee applicable to passenger cars with 9 seats or less.
The current registration fee for passenger cars with 9 seats or less is 10%. However, depending on the actual conditions in each locality, the People’s Council of provinces and centrally-run cities may decide to adjust the increase, but not exceeding 50% of the prescribed level (i.e., a maximum of 15%).
Thus, with the regulations from Pickup Truck Decree 20, the initial registration fee for pickup trucks and vans will be 6% nationwide. In some localities with a higher registration fee for passenger cars than 10%, the registration fee for pickup trucks may also increase accordingly, but not exceeding 9%.
Comparison with Old Registration Fee Regulations
Before Decree 20/2019 took effect, the registration fee for pickup trucks and vans was regulated in Decree 140/2016. According to Decree 140/2016, pickup trucks and vans belonged to the group “cars, trailers or semi-trailers towed by cars, similar vehicles” and were subject to a registration fee of 2%.
This shows that Pickup Truck Decree 20 has created a major change in the registration fee level. From the 2% level under Decree 140/2016, the registration fee for pickup trucks has increased to a minimum of 6%, which is at least a 3-fold increase. This adjustment has a significant impact on the cost of owning a pickup truck and van, affecting consumers’ purchasing decisions.
Additional Regulations on Registration Fee Exemption
In addition to adjusting the registration fee level, Decree 20/2019 also supplements regulations on the exemption from or non-payment of registration fees in certain specific cases.
Accordingly, organizations and individuals who have been exempted from or not required to pay registration fees when registering ownership of cars and motorcycles for the first time, if they transfer them to other organizations and individuals or change the purpose of use and are not eligible for registration fee exemption, will have to pay the initial registration fee on the remaining use value of the assets. This regulation aims to ensure fairness and transparency in the collection of registration fees.
Conclusion
Pickup Truck Decree 20 marks an important turning point in tax and fee policies for pickup trucks and vans in Vietnam. The increase in registration fees to 6% (or possibly higher depending on the locality) has increased the initial ownership costs for these types of vehicles, and may affect the market and consumption trends of pickup trucks in the future. Consumers and businesses dealing in vehicles need to understand these changes in order to have appropriate financial and business plans.
