Vietnam Sets Higher Taxable Prices for Imported Cars
The Vietnamese General Department of Customs has set higher minimum taxable prices for more than 600 imported car models, following allegations that local importers have used under-invoicing to evade taxes.
Taxable prices for all imported cars, both new and used, will be between 3% and 20% higher, which can cause an increase of thousands of U.S. dollars.
An Acura MDX imported from Canada, for instance, was priced at US$33,000 at Vietnamese ports, but now customs will tax the vehicles on a price of no less than US$37,000, even if the actual price is lower.
A car importer in Ho Chi Minh City was quoted by the paper as saying that the move would make competition fairer among businesses, but he said it would also drive retail prices up.
The decision to raise minimum prices for imported cars came after Vietnam Automobile Manufacturers Association has informed the Finance Ministry that some importers intentionally make invoice prices much lower than actual selling prices to reduce their tax obligations.
Imports of completely-built-up vehicles was 28% of total sales last year and had gone up to 32% in the first eight months, compared to just 20% in 2006, according to the association.
The association, which gathers 16 local and international assemblers, forecasts this figure will rise to 45% of total sales this year. (Young People)
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