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Luxury tax may be imposed on aircrafts and yachts
In the amended luxury tax law draft, aircrafts and yachts have been added to the list of items that will bear this tax, with the proposed tax rate of 20%, said a senior official of the Finance Ministry, Vu Van Truong.
The draft has received the approbation of many experts and enterprises. According to lawyer Le Nga, it is correct to add aircrafts and yachts to the list of subjects imposed luxury tax. However, the draft says aircrafts and yachts that are used for commercial means of transport are exempted from the luxury tax. Nga said it is necessary to clarify this point to avoid tax evasion, like what occurs with registration fees for cars.
According to regulations, businesses involved in transportation services enjoy registration fees of 2% instead of 5% (currently 10-15%) for cars so many companies before buying cars register to provide transportation services though they actually never provide these services.
Nguyen Thi Cuc, Chairwoman of the Tax Consulting Association, said adding aircrafts and yachts to the list of luxury tax subjects is to restrict imports of individuals so it is necessary to clearly define use for business because the draft is unclear on this point.
For example, Doan Nguyen Duc, Chairman of Hoang Anh Gia Lai group, bought an aircraft for himself, but this vehicle is also used for business because it carries Duc to meetings and transports his football players, etc.
VNN
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