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Armored vehicle importers now crying foul
After van and ambulance importers complained that they would go bankrupt because tax agencies threatened to collect luxury tax arrears, importers of cash-carrying vehicles are now crying for help.
The two enterprises which lodged complaints with local newspapers asked to remain anonymous. The enterprises said that they had not yet been coerced to pay luxury tax arrears, but they may have to pay tax arrears for vehicles imported from January 1, 2006 to July 21, 2008.
According to a HCM City based business specialising in importing and distributing this kind of vehicle, it is only used for carrying cash. The vehicles have seats for people, but these are reserved for security guards and drivers.
As the luxury tax aims to regulate consumption and limit the consumption of luxury products, that kind of vehicle was not subject to luxury tax. The Special Consumption Tax Law No 57/2005-QH11 only imposed luxury tax on passenger carrying vehicles with four to 26 seats.
However, a problem has arisen as the Ministry of Finance on July 21, 2008 released a document, stipulating that vehicles used to carry both cargo and passengers, including cash-carrying vehicles, must be imposed the tax rate of 15 percent.
The business said that the cash-carrying vehicle is an unpopular vehicle with specific designs which is very difficult to sell. The business only imports that kind of vehicle if it gets orders from enterprises. It seems that only banks place orders to purchase these vehicles. Recently, some companies which provide security services have also ordered these vehicles to serve their clients.
Some experts say that the Ministry of Finance decided to impose the luxury tax on the vehicles that carry both cargo and passengers after it discovered that some enterprises had imported vehicles that carry both cargo and passengers and then turned them into passenger vehicles to avoid tax (luxury tax on passenger vehicles).
However, the business denies the fact that enterprises import cash-carrying vehicles to turn them into passenger vehicles, saying that it is impossible. Even if it was possible, it would cost more than importing a brand new passenger vehicle.
Cash transporting vehicle importers say they do not think that they have the responsibility of paying tax arrears.
They said that the Ministry of Finance should only impose a luxury tax on the vehicles imported after July 21, 2008, when the decision on imposing a luxury tax on those vehicles was promulgated.
Deputy Chairman of the Board of Directors, Deputy General Director of the Banking Mechanical Corporation Nguyen Van Trien, said that if enterprises have to pay tax arrears, most of them will go bankrupt.
VietNamNet, DDDN
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