The Ministry of Finance is collecting opinions from Vietnamese carmakers and relevant authorities on the reduction of car import tariff from 90 per cent to 80 per cent, from January 1, 2007, local media reported.
The proposal for the tax cut is aimed to reduce the domestic car price, which is reported 1.2-1.8 times higher than the regional average, it said.
“The current rate of 90 per cent is compatible with Vietnam’s commitments to the WTO but the ministry thinks the import tax [on cars] should be lower to drive the car price down,” an anonymous official of the Ministry of Finance said.
The ministry is also considering the import tariff decrease for used passenger cars with engine displacement of 2.0-3.0L, he said. However, the vehicles with engines of above 4.L capacity will have their tax raised.
Currently, the absolute tax, a fixed amount of tax on a car line regardless of models, origins and prices, on 2.0-3.0L is US$15,000 each unit while the this tax on 4.L upwards is US$22,000-25,000.
According to the Vietnam Automobile Manufacturers Association (VAMA), 16 leading carmakers in the country sold 34,998 automobiles in January and November of this year, down 1 per cent on year.
VAMA is a grouping of 16 leading carmaker in the country, including Toyota, Ford, Mitsubishi, Honda, GM-Daewoo and Truong Hai Auto.
VnExpress
Vietnamese
