VietNamNet Bridge – The registration and number plate fees for cars under 10 seats (not for transportation business) in HCM City may increase from VND2 million (nearly $100) to VND11 million (over $500) from September 1, 2015.

According to a proposal submitted by the HCM City People’s Committee to the local People’s Council, the registration fees for most types of vehicles will increase, with the highest rise for cars of less than 10 seats that are not used for transport business.

The registration fees for container trucks will increase from VND100,000 to VND150,000; from VND500,000 to VND750,000 for motorcycles valued at VND15 million or less; from VND1 to VND1.5 million for motorcycles priced over VND15 million to VND40 million; and from VND2 to VND3 million for motorcycles priced more than VND40 million.

The registration fee for cars, except for cars of under 10 seats and not used for transport business, will not increase, so it will be still VND150,000 per car.

The city proposed to apply the new rates from September 1.

The city said that the number of new cars accounts for only around 10% of the total newly registered vehicles and the revenue for the budget. The most affected subject will be motorcycles priced between VND15 million and VND40 million (accounting for about 80% of the total newly registered vehicles and the revenue for the budget).

Previously, HCM City suggested increasing fees to reduce the number of new cars. However, experts said most car buyers were wealthy so they were willing to pay higher fees to purchase cars.

HCM City now has more than half a million cars, of which nearly half are cars of 7 seats or less, and over 6 million motorcycles. Traffic jams are frequent in the city.