The General Department of Taxation has instructed tax agencies nationwide to reduce registration fees by 50 per cent for domestically-produced and assembled cars from July 1.

The move was made after the government issued a decree on June 28 on cutting registration fees by half during the second half of the year, to support the domestic automobile industry.

It applied the same reduction in 2021 and 2022 to help the industry overcome the difficulties posed by Covid-19.

The policy had a positive effect, helping automakers recover and gradually expand production, contributing to boosting economic development and ensuring social security by generating employment.

According to the Ministry of Finance, the cut will reduce State budget collections by VND8-9 trillion ($337-379 million).