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Reduction in car part import tax considered
The Ministry of Finance is consulting with relevant ministries and branches when compiling a list of car parts and accessories to be subject to the import tax reductions, which are expected to be applied in upcoming time.
Sources said that the import tax rates are expected to decrease by 2-5% in comparison with the currently applied rates.
The car parts and accessories to see tax decreases are the ones that were highly imposed at the beginning of 2008 as a part of the program aiming to slash trade deficit.
The tax rates are expected to return to the previous levels from before they were raised to control trade deficit in April 2008. Meanwhile, other car parts and accessories will retain the current tax rates.
As for car engines, the tax rates are expected to decrease to 20% from 22% and 23%. The engine parts are thought to see the expected decrease from 20% to 15%, while unfinished assembled gear boxes will see the tax rate of 20% instead of 23%, and the gear box’s parts will see the tax rate decrease from 15% to 10%.
Prior to that, the Vietnam Automobile Manufacturers Association (VAMA) sent a petition to the Government, asking for tax cuts, including the car parts and accessories import tax, which it believes is a very necessary measure to help automobile manufacturers settle difficulties in the context of the low purchasing power and high stocks.
According to VAMA, in the first eight months of the year, VAMA’s members sold 10,000 cars a month. However, the figure tumbled in the last three months of the year, with the sales cut in half to 5,000 cars a month. The dramatic sales decreases have created big difficulties for manufacturers.
VietNamNet, VNE
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