According to the latest report of the General Statistics Office (Ministry of Planning and Investment), after applying the new method of calculating special consumption tax, the number of cars imported into the country in the first month of 2016 decreased by 50%.

The latest report of the General Statistics Office shows thatnumber of cars imported to VietnamJanuary 2016 was only about 7,000 units, equivalent to a turnover value of 175 million USD. Compared to December 2015 with an import quantity of 14,000 units, the import of completely built-up cars in January decreased by 50% in quantity and 56% in value.

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Compared to January 2015, the current volume of imported cars also decreased by 26.6% and the value decreased by 5.1%. However, the surprising thing here is that the volume of imported cars usually increases near Tet. But on the contrary, this year, the volume of imported cars has decreased. What is the reason?

Some experts believe that the reason for the sudden decrease in car imports at the beginning of the year is due to the application of a new special consumption tax rate. This calculation method has pushed up the retail price of cars. Specifically, from January 2016, for imported cars with less than 24 seats, the price used to calculate tax is the selling price of the importer (wholesale price) but cannot be lower than 105% of the cost price of the imported car. According to the old regulations, the tax price is only the CIF price at the port plus import tax.

According to information from some car import businesses, this new way of calculating consumption tax will cause the retail price of cars to "increase" in fees such as: transportation, advertising, labor...

In a previous report, the General Department also said that in 2015, the import volume of all types of complete automobiles into Vietnam reached the highest level ever with 125,600 units, an increase of 77.1%; the import value was 2.99 billion USD, an increase of 88.8% compared to the previous year.

Of which, the import volume of cars with 9 seats or less reached 51,460 units, up 63%; trucks reached nearly 49,000 units, up 79.6%; other types of cars reached 23,940 units, up 114%; cars with over 9 seats reached 1,250 units, up 34% compared to 2014.

According to One World