Vietnam to Cut Tax on Imported Cars, Finance Ministry
The Ministry of Finance will reduce import tax on cars unless prices in the local market keep soaring, Minister Vu Van Ninh said on the sideline of the recent national assembly meeting.
The statement is seen as the last warning of the ministry to the Vietnam Automobile Manufacturers’ Association (VAMA) after nearly a month releasing its first request to lower car prices.
In response to the ministry’s calling, Mercedes-Benz Vietnam is the only local carmaker to announce that it will slash between US$3,000 and US$10,000 for E-Class model.
It is the third time this year the ministry will have cut tax on imported cars. Since August 8, the ministry has lowered the import duties on brand-new automobiles to 70 per cent from 80 per cent and decreased 5 per cent of import duties on used cars.
According to the government’s General Statistics Office, Vietnam imported US$450 million worth of automobiles in the first eight months of this year, up 38.8 per cent on year.
As of August 2007, Vietnam is estimated to accommodate 721,859 automobiles, increasing 66,000 units compared to end-2006, said statistics from the Vietnam Registry Department. (Pioneer, Vama’s Report Aug 2007)
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