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Vietnamese products bear highest taxes, fees in ASEAN
In Vietnam, a car bears three kinds of tax and dozens of fees. Rice reportedly has more fees that any other product or service.
The Ministry of Finance (MOF) recently released a draft circular on collecting emission testing fees on road vehicles, fuel consumption testing fees, and energy labeling certification fees on cars with seven seaters and less.
Under the draft circular, petrol-run vehicles would be charged VND16 million for every test, and diesel-run vehicles VND16.5 million.
The Ministry of Finance also plans to collect VND100,000 per energy label certificate.
According to Autodaily, cars bear a car part import tariff of 10-30 percent, CBU (complete built unit) import tariff of 50-70 percent, luxury tax of 40-60 percent, VAT of 10 percent and corporate income tax of 22 percent.
A car has a registration tax of 10-15 percent, an examination fee, number plate granting fee, and technical safety fee.
Car owners also have to pay road maintenance fees, pay for the petrol price stabilization fund and take out civil liability insurance.
In general, Autodaily has estimated that three major kinds of tax and tens of kinds of fees are now imposed on every car in circulation.
Rice also bears heavy taxes and fees. The latest survey conducted by the Ministry of Finance’s Market and Price Institute shows that rice bears more than 100 kinds of taxes and fees.
The taxes and fees go to three pockets – the state budget, cooperatives (fees paid for technology transfer, irrigation works, plant protection chemicals and others) which account for 38-40 percent.
Also, the fees go to the fund for social purposes (environmental fee, embankment development, the fund for supporting victims of natural calamities) which account for 25-30 percent.
In general, cultivation and animal and poultry husbandry bear 14 kinds of fees and 17 kinds of charges related to veterinary hygiene.
The fees and charges, applied in the last four years, have caused financial difficulties for farmers. A National Assembly’s deputy has reckoned that every fowl has to ‘carry’ 14 kinds of fees and charges.
Minister of Agriculture and Rural Development Cao Duc Phat, asked before the National Assembly about the numerous kinds of fees and charges, promised to ask the Ministry of Finance to amend current regulations.
Phat later sent a dispatch to the Ministry of Finance, asking to remove 31 kinds of fees and charges imposed on eggs and animal meat.
Dr. Tran Dinh Thien, a renowned economist, in his recent report, showed that the ratio of taxes and fees of GDP in Vietnam was 1.4-3 times higher than other regional countries.
In 2007-2012, the ratio was 21.6 percent of GDP, higher than 17.3 percent in China, 15.5 percent in Thailand and Malaysia, 12.1 percent in Indonesia and 7.8 percent in India.
vietnamnet
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