The price of automobiles will decrease at least 5 per cent from January 2007 due to lower import taxes, local media quoted authorized source as saying.
Vietnam will lower import tax levied on passenger automobiles to 80 per cent from current 90 per cent from January 01, 2007, which will decrease prices of imported vehicles as well as force automakers in Vietnam to cut prices of their products, Sai Gon Giai Phong Daily quoted Deputy Finance Minister Truong Chi Trung as saying.
The Ministry of Finance is now considering the possibility of reducing tariffs on secondhand vehicles, he said, noting that the new import taxes may be applied on January 01, 2007.
Vietnam lifted a ban on imported secondhand cars and imposed fixed absolute tax of $3,000 to $25,000, depending on engine size in May 2006.
In addition to the fixed import tax, used cars are to bear 50 per cent special consumption tax, and 10 per cent VAT.
Both the permission for import of passenger vehicles and import tax reductions are in line with WTO commitments.
This year, most carmakers have to slash the price of their vehicles as the market is shrinking.
Ford Vietnam, for example, cut prices of its cars three times this year, aiming to keep its second place on the sales list made monthly by the Vietnam Automobile Manufacturers Association (VAMA).
Vietnam now has 13 operational foreign-led carmakers and dozens of domestic assemblers. Foreign-led firms have a combined annual capacity of 173,000 units.
According to the General Statistics Office, the Vietnamese automotive industry manufactured 37,185 units in the first 11 months of this year, down nearly 30 per cent on year.
Tuoi Tre Online
Vietnamese
