Imposing high excise taxes on luxury cars.

The Prime Minister has requested the application of a high excise tax rate on vehicles with up to 9 seats and engine capacities exceeding 3.0 liters.

The Government Office has just announced the conclusions of Prime Minister Nguyen Tan Dung at the Standing Committee meeting on the mechanisms and policies for implementing the Strategy and Planning for the development of Vietnam's automobile industry. In it, the Prime Minister assigned the Ministry of Finance to take the lead, in coordination with the Ministry of Industry and Trade and other relevant ministries and agencies, in urgently developing a plan to amend policies on special consumption tax and corporate income tax.

Illustrative image

The Prime Minister has requested adjustments to the excise tax rates based on the principle of dividing them into smaller groups as stipulated in the current Excise Tax Law, taking into account the experience of some countries in the region, with a view to reducing the excise tax rates for priority vehicle lines.

Specifically, high and exceptionally high excise tax rates should be applied to vehicles with up to 9 seats, engine capacities exceeding 3.0 liters, high fuel consumption, large dimensions unsuitable for the traffic infrastructure and people's income levels, high emissions, and vehicles with up to 9 seats that have a high absolute value.

According to VOV