Vietnam Raises Import Tax on Second-hand Cars by US$3,000

 

The ministry will raise import tax up 11 per cent (or US$300) on less than five seat car with capacity cylinder less than 1.0L, the website noted, adding that the import tax for car with from 4.0L cylinder upward keeps unchanged ranging from US$26,400 to US$30,000.

 

Following tables illustrate the import tax increase on second-hand cars.

The new tax will be effective after 15 days of publication.

 

Car type	Current import tax (USD/Unit )	New import tax (USD/unit)
Less than five seat cars (including driver) and has designed cylinder at:
<1,0	2,700	3,000
1.0 – 1.5	6,300	7,000
1.5 – 2.0	8,500	9,000
2.0 – 2.5	12,000	13,500
2.5 – 3.0	12,000	15,000
3.0 – 4.0	16,200	18,000
4.0 – 5.0	26,400	26,400
> 5.0	30,000	30,000

 

Car type	Current import tax (USD/Unit )	New import tax (USD/unit)
From six to seven seat cars (including driver) and has designed cylinder at:
<2.0	7,200	8,100
2.0 – 3.0	11,200	12,600
3.0 – 4.0	14,400	16,000
> 4.0	24,000	24,000

 

Vietnam reduced car import tax three times in 2007 to 60 per cent from 90 per cent, aiming to follow the WTO’s commitments and cool down the locally made car prices. However, the country has to raise the tax to 70 per cent as many of the local car makers hesitate to reduce prices and the imported car are flooding into the country. (VnExpress)