Car prices in Vietnam drop sharply from today (July 1)

Car models with cylinder capacity under 1,500 cm will have deep discounts, equivalent to 5%, about 20-30 million VND/car.

Illustration photo. Source from Internet

On April 6, 2016, the National Assembly passed a law amending and supplementing a number of articles of the Law on Value Added Tax, the Law on Special Consumption Tax and the Law on Tax Administration (effective from July 1). With these amendments, the special consumption tax schedule for automobiles has many changes.

Specifically, the special consumption tax rate for imported passenger cars with 9 seats or less and an engine cylinder capacity of 1,500 cm3 or less will be reduced from the current 45% to 40% from July 1, 2016, then further reduced to 35% from January 1, 2018.

Thanks to this tax reduction, small cars have the opportunity to reduce their prices. Specifically, models with cylinder capacity under 1,500 cm3 such as Toyota Vios, Yaris; Honda City; Ford Fiesta Ecoboot; Hyundai i10, i 20; Kia Morning; Chevrlet Spark... will have the opportunity to deeply reduce their prices, equivalent to about 5%, about 20-30 million VND/car.

The tax rate for vehicles with a cylinder capacity of over 1,500 cm3 to 2,000 cm3 will remain at the current 45% rate until December 31, 2017, then decrease to 40% from January 1, 2018. Vehicles with a cylinder capacity of over 2,000 cm3 to 2,500 cm3 will remain at the current 50% rate.

Taxes will be reduced for small-capacity vehicles, but taxes will increase for vehicles with a cylinder capacity of over 2,500 cm3.
Specifically, the special consumption tax rate applied to vehicles with a cylinder capacity of over 2,500 cm3 to 3,000 cm3 will increase from the current 50% to 55% from July 1, 2016, then increase further to 60% from January 1, 2018.
Details of special consumption tax rates applied from July 1 for cars are in the table below:

Car models with cylinder capacity under 1,500 cc will have deep discounts, equivalent to 5%, about 20-30 million VND/car.