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Auto manufacturers ask for Tet present of tax decreases
Automobile manufacturers in a meeting with Deputy Minister of Industry Le Duong Quang on December 30 asked the government to delay the implementation of tax policies related to the automobile industry in order to help rescue the industry.
The manufacturers asked for the delay of the implementation of the luxury tax law, under which the tax will increase from 30-50% to 45-50-60%; the ownership registration tax, under which the tax rate in Hanoi will be raised from 10% to 12% on less-than-9-seat cars; and the value added tax, from 5% to 10%.
The manufacturers have called for the government to lower the taxes on automobiles, at least to the levels applied before April 2008, in the context of the big difficulties of the local automobile industry.
Nguyen Chi Cong, Deputy General Director of Mercedes Benz Vietnam, representing Vietnam Automobile Manufacturers’ Association (VAMA) members, said at the meeting that automobile production was being negatively affected by sharp falls in consumption due to the global economic recession.
Moreover, changes in automobile tax policies in 2008 have narrowed the market’s scale.
VAMA’s average sales in the last three months of the year saw a decrease of 50% in comparison with the first eight months of the year as the result of the ownership registration tax increase from 5% to 10%. The difficulties of the automobile industry have made manufacturers think of cutting 2-3,000 jobs, or 20-30% of total labourers.
Lao dong
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