Apr 4, 2012

Vietnam - Transport ministry bows to criticism over vehicle fees

The Ministry of Transport, which has been under fire over a scheme to slap three new vehicle fees, has backed down from part of the plan

Minister of Transport Dinh La Thang, grilled by local media over the planned fees at a news briefing after the monthly Cabinet for March in Hanoi last week, said that if approved, two of the three fees would not take effect this year.

The Government is just weighing the proposed scheme to levy a road maintenance fee, a private vehicle traffic restriction fee and a fee on restriction of vehicular traffic in downtown areas in major cities at peak hours.

Asked about the Government’s standpoint on the controversial proposal, Vu Duc Dam, minister and chairman of the Government Office, said at the news briefing that the ministry had passed the fees collection scheme to the Government.

But the Government is still in the process of garnering ministries’ views on the plan before it decides whether or not to send it to the National Assembly because such kinds of fee are not yet available on the list of fees and charges provided by the National Assembly Standing Committee, Dam said.

“That’s just a proposal of the Ministry of Transport. That’s all,” he said.

Meanwhile, Minister Thang said the road maintenance fee, with effect from June 1 this year, was not an initiative taken by the ministry but this was a requirement set by the law on road transport that came into force in July 2009.

“There shoud have been guidelines for collecting this fee earlier. It was the ministry’s fault that no guidance documents had come out and no campaign had been carried out to raise public awareness of the fee,” he said.

For the other two fees, Thang cited Resolution 21 adopted by the National Assembly Standing Committee at its second session as a reason for the ministry to put forth the two fees.

In the resolution, the National Assembly Standing Committee approved of measures to be taken by the Government and his ministry to cope with worsening traffic congestion, and increase penalties on traffic rule violations, he added.

He said the Government also sent the National Assembly a report on taking strong actions to deal with increasingly severe traffic congestion and road accidents in major cities. Government Report 256 dated November 25, 2011 mentioned the two above fees, he noted.

A resolution adopted by the fourth plenum of the Party Central Committee also makes clear that road users are responsible for paying fees as a contribution to infrastructure development, he said. “Based on those, we’ve submitted our proposal.”

He said the ministry had made assessments on impacts of the proposed private vehicle traffic restriction and traffic jam reduction fees in its plans to develop commuter bus systems and roads until 2020.

When the two fees are introduced is unkown, Thang said, because they require National Assembly enactment. “If approval is forthcoming, they will not apply this year since the economy is reeling from difficulties.”

SGT

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