ID :
48960
Wed, 03/04/2009 - 22:47
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Shortlink :
http://m.oananews.org//node/48960
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Ministry confirms new vehicle tax
Hanoi (VNA) - The Finance Minister issued a decision on Mar. 3 to reduce the import tax on components of trucks of 20 tonnes or less to 15 percent from the current 20 percent.
The reduction will be applied to customs declaration as from Mar. 9.
The ministry has also confirmed that the new automobile tax will be applied as
scheduled when the Special Consumption Tax becomes effective on April 1.
The confirmation should quash speculation that the tax would be delayed to help the
industry in its struggle against the contracting global economy.
The National Assembly approved the new Special Consumption Tax at its November
plenary session.
It sets the tax according engine capacity for vehicles of less than 10 seats rather
than their carrying capacity and will range from 40 to 60 percent.
The prevailing tax is: less than six seats, 50 percent; from six to 15 seats, 30
percent and from 16-24 seats, 15 percent.
The tax for bigger vehicles will still be calculated from their carrying capacity.
The tax for 10-15 seaters will be 30 percent and 16-24 seaters, 15 percent.
The prospect of the new tax has prompted traders to heavily import new vehicles.
Both the Ministry of Industry and Trade and the Vietnam Automobile Manufacturers'
Association have asked the Government to temporarily suspend the special
consumption tax; the value added tax and registration fees to help car makers and
traders eliminate the growing stockpile of vehicles.
The ministry's figures show that about 110,000 automobiles were sold in the first
nine months of 2008, and car makers and traders had expected to sell another
130,000 automobiles in the last months of the year.
But sales were 50 percent less than forecast.
Many manufacturers have now had to stop production and the number of workers has
been reduced between 20-30 percent.
The Government should now delay introduction of the new tax to bus and vehicles
that serve production and services, argues the Ministry of Industry and Trade.
The new special consumption tax for automobiles is forecast to provide the
Government with an extra 700 billion VND (40 million USD) in revenue each year.
About 400 billion VND of this will be raised from made-in-Vietnam vehicles.-Enditem
The reduction will be applied to customs declaration as from Mar. 9.
The ministry has also confirmed that the new automobile tax will be applied as
scheduled when the Special Consumption Tax becomes effective on April 1.
The confirmation should quash speculation that the tax would be delayed to help the
industry in its struggle against the contracting global economy.
The National Assembly approved the new Special Consumption Tax at its November
plenary session.
It sets the tax according engine capacity for vehicles of less than 10 seats rather
than their carrying capacity and will range from 40 to 60 percent.
The prevailing tax is: less than six seats, 50 percent; from six to 15 seats, 30
percent and from 16-24 seats, 15 percent.
The tax for bigger vehicles will still be calculated from their carrying capacity.
The tax for 10-15 seaters will be 30 percent and 16-24 seaters, 15 percent.
The prospect of the new tax has prompted traders to heavily import new vehicles.
Both the Ministry of Industry and Trade and the Vietnam Automobile Manufacturers'
Association have asked the Government to temporarily suspend the special
consumption tax; the value added tax and registration fees to help car makers and
traders eliminate the growing stockpile of vehicles.
The ministry's figures show that about 110,000 automobiles were sold in the first
nine months of 2008, and car makers and traders had expected to sell another
130,000 automobiles in the last months of the year.
But sales were 50 percent less than forecast.
Many manufacturers have now had to stop production and the number of workers has
been reduced between 20-30 percent.
The Government should now delay introduction of the new tax to bus and vehicles
that serve production and services, argues the Ministry of Industry and Trade.
The new special consumption tax for automobiles is forecast to provide the
Government with an extra 700 billion VND (40 million USD) in revenue each year.
About 400 billion VND of this will be raised from made-in-Vietnam vehicles.-Enditem
