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Crackdown on tax-exempt number plates for foreigners
Cars owned by exparts that are entitted to special tax exemption will be subject to new inspections by the ministries of Public Security, Foreign Affairs and General Department of Customs.
The inspections target cars with registration plates beginning with the letters NN, NG and QT.
The cars can be bought by expats with a temporary residence card and will not be subject to tax for two years.
Once the time is up, the cars have to be sold for export. If they are not, owners have to pay tax.
The problem was that some cars were not sold and were passed onto new owners who continued to pay no tax, said Tran Son, Senior Lieutenant Colonel of the Road and Railway Management Department.
The violation led to difficulties in managing the cars and losses for the State budget incurring tens of billions of dong per year, Son said.
Under the current regulations, cars imported to the country are subject to four different types of tax: import, special consumption, value added and registration taxes.
Number plates with NN are import tax free. Cars with plates beginning with NG are for people working in diplomatic agencies and international organizations. They only have to pay registration tax.
As part of the inspection process, officers will suggest necessary ways to recollect taxes from car owners who have violated law, and build specific regulations to better manage cars with foreign number plates, Son said.
This was necessary because there were currently no regulations to punish violators in cases where the original owners had gone back to their home countries, he said.
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