Vietnam Raises Taxes on Used Car Imports

3:04:32 PM | 4/17/2008

The Vietnamese Ministry of Finance has decided to hike import tariffs on second hand cars basing on capacity and the seat number, state media reported Wednesday [April 16].

Tax on less-than-five-seat cars with piston capacity of less than 1.0 L will be up to US$3,000 per unit; those ranging from 1.0 L to 5.0 L to be imposed with US$7,000-US$26,400 per unit; and more than 5.0 L, US$30,000 per unit.

Similarly, cars of 6-9 seats will bear higher taxes of US$8,100-US$16,000/unit, depending on their piston capacities while rates for cars of 10-15 seats will be between US$7,200-US$15,000/ unit.

The following table is the breakdown of import taxes on used cars, based on capacity and number of seat:

* For Less-Than-Five-Seat Cars

Piston Capacity	Tax Rate/Unit
Less than 1.0 L	US$3,000
1.0-1.5 L	US$7,000
1.5-2.0 L	US$9,000
2.0-2.5 L	US$13,500
2.5-3.0 L	US$15,000
3.0-4.0 L	US$18,000
4.0-5.0 L	US$26,400
More than 5.0 L	US$30,000