Vietnam Cuts Tax on Imported Cars
The Vietnamese Ministry of Finance has decided to lower taxes on imported automobiles this month, the second reduction this year.
The tariffs on brand-new automobiles will be reduced to 70 per cent from 80 per cent, effective from August 8.
Passenger cars with less than eight seats, cars with more than 10 seats, diesel cars and cars with internal combustion engines from less than 1,800 cc to over 4,000 cc, golf cars and other vehicles will be subjected to the tax cut.
The ministry also decreased 5 per cent of import duties on used cars.
The import tariff on this kind of vehicles is absolute tax, a fixed amount of tax for vehicles of the same category, regardless of origin and price. The existing absolute tax ranges between US$3,000 and US$26,000 a unit.
The tax cut is expected to drive down the sky-high price rates in the country, which is multiple from the regional rates.
In early 2007, Vietnam already reduced taxes on foreign cars to 80 per cent from 90 per cent.
Vietnam levies lower taxes on vehicles it is incapable of manufacturing, including heavy trucks.
According to the General Statistics Office (GSO), Vietnam imported US$193 million worth of automobiles in the first seven months this year, up 55 per cent and 33.9 per cent on year. (Labor, VietnamNet, VnExpress)
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