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Light vans may be taxed less
The Finance Ministry wants the import tax on some light commercial vehicles reduced from 80 to 70 per cent.
In a letter to the auto associations and companies, it proposed lower tax apply to vehicles of 10-seats and more from next year.
The ministry argued the lower tax would stimulate economic growth through the utilisation of such vehicles.
It would also honour Viet Nam's commitment to the World Trade Organisation, WTO, and ASEAN.
Viet Nam Auto Manufacturers Association representative Nguyen Trung Hieu said that impact of a lower tax would vary from enterprise to enterprise.
And although the lower 70-per-cent tax could benefit other enterprises, its financial benefit to transport companies was questionable.
Viet Nam Automobile Transportation Association chairman Nguyen Manh Hung said the proposed lower tax was necessary because commercial transport was crucial to the economy.
The lower tax would help transport companies improve service quality and the association supported the Finance Ministry's proposal, he said.
The on-line newspaper vnexpress.net reports the ministry also wanted the import tax for four-wheel-drive and vehicles of less than nine seats to be reduced, but has yet to provide details.
The news portal speculate that vehicles of less than nine seats could attract an import tax of about 70 per cent next year as part of the ASEAN commitment or 83 per cent in accordance with the WTO commitment.
Four-wheel-drive vehicles could attract 70 per cent tax based on the ASEAN commitment and 73 per cent tax in accordance with WTO commitment.
The prevailing tax is 83 per cent.
Defence
The Finance Ministry has defended its proposed cut to the import duty for trucks by saying it was necessary to meet Viet Nam's WTO commitment to a new regime for imported goods from the new year.
The ministry proposes that the import tax for five-tonne trucks be reduced from 80 to 30 per cent; from 54-55 to 25 per cent for five- to 10-tonne trucks, from 30 per cent to 25 per cent for 10- to 20-tonne trucks and from 15 per cent to 8 per cent for 20- to 45-tonne trucks.
Xuan Kien Vinaxuki Automobile Stock Company general director Bui Ngoc Huyen has warned the lower tariffs could cause truck–making factories to close.
Truong Hai Auto Joint Stock Company Tran Ba Duong complained the reduction was being applied far ahead of the WTO deadline of 2018.
The Finance Ministry argues the high import tax helps sparks inflation because of the important role transport plays in the consumer price index.
The proposed tax reduction will also help ease the State subsidy to domestic truck makers and provide them with the chance to become more efficient, it says.
vietnamnews
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