After a tense meeting, the Hanoi People’s Council on December 8, approved Hanoi authorities’ proposal to increase the car registration fee to 20 percent and the license-number fee by ten times, to VND20 million around ($1,000).

According to Hanoi authorities, the fast growth of personal cars in recent years while transport facilities do not develop at the same pace, has contributed to the capital city’s serious traffic jams. The city, therefore, wants to increase of kinds of fees in order to partly curb gridlocks and to raise budget revenue.

The city’s government had proposed to increase the first-time registration fee on cars of less than ten seats to 20 percent, from 12 percent at present while the registration fee from the second time will be kept at 12 percent.

The Hanoi authorities had suggested to raise the license-number granting fee for personal cars of less than ten seats to VND20 million, from the current level of VND2 million ($100).

In addition, they also wanted to increase motorbike registration and license-number granting fees, parking fees for all kinds of vehicles.

However, the Hanoi People’s Council only approved the increase of car registration and license-number granting fees. 

Some deputies said that it is unfair for Hanoians because many cars from other provinces still run in Hanoi. Moreover, if the fees are raised, some people may no longer register their cars in Hanoi.

They also said that this is not a good measure to restrict personal cars and asked the city to consult scientists.

Source: VNN