3:26:38 PM | 7/8/2005
The Ministry of Industry (MoI) has proposed the government to impose the same special consumption tax (SCT) rate on both locally made and imported cars this year, according to a report of the ministry.
The current special consumption tax on locally made cars is 40% and on imported cars is 80%.
MoI has also proposed prolonging the tax cut roadmap until 2012 instead of 2007 and revising a timeframe for new tax rate applications to facilitate the local automotive industry as well as auto firms in the country.
MoI also asked for increasing import tariffs on total equipment to 70% as compared with imported finished cars, used cars to 200%, trucks of 20-45 tons to 30% and special vehicles to 20%.
In the meantime, spare parts import duties are proposed to stand less than 30%.
To smoothen the application of the likely new taxes, the MoI proposed the Ministry of Finance to categorize automobiles into six groups: cars of less than nine seats, cars of more than nine seats, trucks of less than five tons, trucks of 5-20 tons, trucks of 20-40 tons and trucks of over 40 tons.
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