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Automobile joint ventures complain about high ownership registration tax
The Vietnam Automobile Manufacturers’ Association (VAMA) has lodged a complaint with Hanoi authorities about the high ownership registration tax on less-than-10-seat cars.
The document sent to the city’s authorities wrote that VAMA believes that the measures to stimulate the demand and encourage production prove to be very necessary now.
In such conditions, the lately move of raising the ownership registration tax increase to 10% has led to the sharp falls of local manufacturers’ car sales. Some VAMA’s members have to apply drastic measures to deal with the car sales dramatic decreases, cutting down the workforce and scaling down the production.
The VAMA’s document emphasized that the possible increase of the ownership registration tax to 15% (the highest allowed level) will make the difficulties local automobile manufacturers are facing become more serious. This will make relating industries suffer, thus indirectly affecting labourers.
VAMA said that even if Hanoi and HCM City raise the ownership registration tax to 15% as they are encouraged to do, the cities will not be able to reduce the number of circulating vehicles which are believed the main reason behind the serious traffic jam. If the two cities impose high ownership registration tax rates, vehicles’ owners will have their cars registered in other cities and provinces which impose lower tax rates, but will still run the cars in Hanoi or HCM City.
VAMA believes that Hanoi should not think of raising the ownership registration tax on the cars with less than 10 seats right now, while it should consider other measures to ease the traffic jam.
In long term, VAMA said that only the infrastructure development, the heightening of the awareness of people about transport, and the improvement of the public transport system can help settle the traffic jam problem to the every roots.
In the latest news, the Hanoi People’s Council has decided to raise the new ownership registration tax on cars with less than 10 seats at 12%, or 2% higher than the currently applied rate of 10%, about which VAMA has complained. The new tax rate of 12% will be effective as of January 1, 2009.
TBKTVN
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