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No cut in store for duty on buses
The Ministry of Finance and the Ministry of Industry and Trade have sent documents to the Government Office to oppose the Ministry of Transport's proposal to cut bus import duties to zero per cent.
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| Workers of the May 1st Automobile Company in Ha Noi on a bus assembly line. The Ministry of Finance and the Ministry of Industry and Trade have opposed a proposal to cut bus import duties to zero per cent. |
Earlier this month, Minister of Transport Dinh La Thang asked the Government for permission to slash the current import tax of 70 per cent for complete-built units (CBUs) and 10-32 per cent for spare parts of buses to zero per cent between now and 2015 to stimulate the development of public transport systems in Ha Noi and HCM City.
The Ministry of Industry and Trade suggested that domestically-made vehicles should be given priority to developing traffic systems in the cities, explaining that the domestic automobile manufacturing industry was now capable of producing buses that could serve home demand.
Taxes for CBUs and accessories should continue to be applied in accordance with roadmaps stipulated in commitments with the World Trade Organisation as well as trade agreements with ASEAN, it said.
The Ministry of Finance said current laws only permitted import tax exemption to be applied for certain vehicles used in technological chains specified by the Ministry of Science and Technology, and buses weren't named on the list.
It warned that such tax exemption would discourage and negatively affect the local automobile industry.
The Ministry of Finance, however, noted that tax payers could ask the Government for consideration if they meet difficulties due to objective causes - as stipulated in Government Decree No 87/2010.
It suggested the Ministry of Transport provide more information related to the values of imported and domestically-made vehicles and manufacturers' production capabilities to submit to Prime Minister Nguyen Tan Dung for consideration.
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