Ministry of Finance rejects proposal to exempt import tax on double-decker buses

The proposal to exempt import tax on double-decker buses serving tourists by some businesses has just been rejected by the Ministry of Finance.

The Ministry of Finance has just sent a document to the Government regarding the request of two enterprises to be exempted from import tax on public double-decker buses serving tourists. Accordingly, this agency requires enterprises to comply with current laws.

In Hanoi and Da Nang, some domestic businesses have piloted the use of double-decker buses, the second deck without a roof, to serve tourists.

The Ministry referred to the regulations on import tax rates that Vietnam participates in, such as the most-favored-nation (MFN) preferential import tax rate, which is currently 70% according to Decree No. 122/2016 of the Government. The special preferential import tax rate in ASEAN (ATIGA) is 30% applied until the end of December 2017 and 0% from January 1, 2018 onwards. The special preferential import tax rate for ASEAN and China, including Vietnam, is 70% until the end of December 2017 and 50% from January 1, 2018 onwards is 50%...

The agency emphasized that these documents do not contain any provisions showing that Vietnam reduces or abolishes import tax for each type of vehicle.

At the same time, the Ministry of Finance said that in May 2015, the Prime Minister issued a Decision on mechanisms and policies to encourage the development of public passenger transport by bus, which stipulates only exemption of import tax on spare parts and components that cannot be produced domestically for the production and assembly of public passenger transport by bus or exemption of registration fees for public passenger transport by bus using clean energy.

For the above reasons, the Ministry of Finance affirms that the Government does not encourage the import of buses for passenger transport. The Ministry requests that enterprises participating in the pilot program comply with current regulations.

Previously, since June 2017, in Hanoi and Da Nang, some domestic enterprises have piloted the use of double-decker buses, with the second deck having no roof, to serve tourists.

According to VNE