Vietnam Considers Tax Cut on Car Part Imports

The Ministry of Finance is seeking consultancy from relevant ministries and branches for building up a list of car parts and accessories to be subject to the import tax reductions.

 

Import tax rates are expected to be slashed 2 per cent-5 per cent in comparison with the currently applied rates, the paper said, adding that the reductions are expected to be applied in upcoming time

 

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 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 per cent from 22 per cent and 23 per cent. The engine parts are expected to be down to 15 per cent from 20 per cent, while unfinished assembled gear boxes will be taxed 20 per cent instead of 23 per cent, and the gear box’s parts will see the tax rate decrease from 15 per cent to 10 per cent.

 

Previously, the Vietnam Automobile Manufacturers Association (VAMA) sent a petition to the Government, asking for tax cuts, including the car parts and accessories import tax, in order to help automakers settle difficulties amid the low purchasing power and high stocks. (Vietnam Economic Times)