Auction of license plates, where do the proceeds go?

The Ministry of Public Security proposed auctioning license plates, as well as a plan to use the proceeds from this.

As reported, the Ministry of Public Security is collecting opinions on the draft Resolution on piloting granting the right to choose to use car number plates through auction.

In the draft, the Ministry of Public Security proposes that the number plate selected for auction is a white car license plate with black letters and numbers in the unregistered number plate inventory that the registration agency plans to issue each month. , quarterly, 6 months or 1 year.

The starting price of license plates is divided into two categories: Zone 1, including Hanoi and Ho Chi Minh City, is calculated according to the formula Gkđ = Glp x 2. Zone 2, remaining provinces, Gkđ = Glp x 10. In which , Gkđ is the starting price of the number plate put up for auction, the unit is Vietnam dong; Glp is the highest applicable local registration fee.

The auction winner is entitled to sign a contract with the auction agency or organization to establish the right to the auction winning number plate; to use the winning number plate at the auction; when transferring a vehicle, is entitled to retain the number plate to register for another vehicle under his/her ownership (the number plate follows the person).

The Ministry of Public Security is collecting comments on the draft license plate auction. Illustration: Facebook

Notably, the Ministry of Public Security said that the 2015 State Budget Law did not stipulate the use of proceeds from number plate auctions, the mechanism to deduct % of the proceeds from number plate auctions for local budgets. .

Currently, the Ministry of Public Security is collecting a very large annual registration fee, according to statistics in 2020 it will collect 3,892 billion VND, the first 6 months of 2021 will collect 1,797 billion VND and the entire amount. are paid into the state budget; while the source of costs for the collection of registration fees and license plate issuance arranged by the state budget in accordance with the law is still very low.

The Ministry of Public Security believes that collecting the money from auctions and vehicle registration fees and properly distributing it between the central and local governments to invest in a system of facilities for vehicle registration and management. road motoring, serving state management and policy making for socio-economic development.

Therefore, this draft proposes that the proceeds from the auction of number plates, after deducting the costs of organizing the auction as prescribed, will divide the revenue at the rate of 70% and remit to the central budget, 30 % allocated to the local budget.

The Ministry of Public Security believes that the pilot grant of the right to choose to use license plates through auctions will help convert the number plates that follow the vehicle to the license plate that follows the person, which is very convenient for determining who the car owner is. , improve the efficiency of state management.

The number plate auction also meets the legitimate needs and aspirations of the people so that vehicle owners have the right to choose license plates according to their preferences, in parallel with the current random vehicle registration system.

Along with that is the effective exploitation of number plates (public property) to generate revenue for the State budget from number plate auctions, investment in infrastructure systems for vehicle registration and management. road motoring, serving state management and policy making for socio-economic development.