Hai Phong to unify 12% vehicle registration tax across the city from July 1, 2026

Information from the Hai Phong City People’s Committee indicates the city plans to apply a uniform 12% registration tax for cars under 9 seats across the entire area starting from July 1, 2026, to eliminate the disparity between the eastern and western parts of the city after the merger and to increase budget revenue. Prior to July 1, 2025, during the administrative reorganization, the old Hai Phong area applied a 12% registration tax for cars under 9 seats, while the old Hai Duong area applied 10%. Since the merger, the rate for cars under 9 seats across areas has remained unchanged, creating disparity between the two regions. This difference has led residents to register vehicles in the area with the lower tax rate to reduce costs, resulting in budget losses and inequality across the city. According to a survey by authorities, the difference between the two areas in registration tax for cars under 9 seats was evident in 2020-2025. Specifically, in 2021, Hai Phong collected 1,588 billion VND in registration tax, three times Hai Duong’s 464 billion VND for cars under 9 seats. In 2023, Hai Phong collected 817 billion VND, Hai Duong 434 billion. In 2025, Hai Phong 1,122 billion, Hai Duong 674 billion. Overall, Hai Phong’s total registration tax revenue over the period reached 6,202 billion VND, about twice Hai Duong’s 3,059 billion VND. This trend reflects the ability to attract car registrations in the lower-tax area and underscores the need to adjust policies to ensure fairness and stable local revenue. Additionally, under Circular No. 51/2025/TT-BCA dated June 30, 2025 of the Ministry of Public Security, the new license plate series for Hai Phong after the merger will be 15, 16, 34; vehicle owners residing in the former Hai Duong area may still register cars and have the Hai Phong 15-prefix plate. Residents only need to meet residence conditions to register cars in other areas within the same city after the merger but can still obtain the 15-prefix plates for Hai Phong. This situation further encourages shifting registration to the lower-tax area, directly affecting local budget revenue. The city expects that applying a unified 12% rate for cars under 9 seats could raise annual registration tax revenue for cars under 9 seats by about 120-150 billion VND. At the same time, the policy will help regulate the private car market, reduce pressure on urban transport infrastructure, and steer consumption toward more sustainable practices. Hai Phong plans to consider and apply the unified 12% registration tax for cars under 9 seats from July 1, 2026.