A series of auto businesses follow each other to request tax extension.

Vietnam Engine and Agricultural Machinery Corporation (VEAM) has just submitted a request to the Government for an extension on tax payment, because it has to focus on "developing the automobile industry" in a difficult context.

According to the petition sent by this unit on June 24, VEAM requested the Government to extend the payment of import tax on auto components and materials serving domestic auto assembly production.

VEAM Automobile Factory located in Thanh Hoa is a 100% state-owned enterprise, under VEAM, one of four units assigned by the Government to develop the Vietnamese automobile industry.

The factory officially started operating in September 2009 and the first products were introduced to the market on March 31, 2010, including light trucks, medium trucks, heavy trucks and other specialized vehicles.

Currently, the factory is implementing a long-term cooperation program with the MAZ automobile manufacturing group (Belarus) through a contract for technology transfer and supply of components to produce medium and heavy trucks serving the Vietnamese market and exporting to other countries in the region.

However, the factory was described as “having encountered many difficulties due to the economic recession”. Currently, the factory has a large inventory of medium and heavy trucks under the MAZ brand, and this situation has “significantly affected the production and business activities of the enterprise as well as the cooperation program with the MAZ Group”.

In the long-term development plan, the factory still wants to expand investment, upgrade technology and equipment to increase the localization rate, improve quality and reduce product costs.

To overcome difficulties in production and business, VEAM requests the Government to extend the payment of import taxes on auto components and materials for production and assembly from July 1, 2013 to December 31, 2013 with a total value of 180 billion VND.

VEAM said that the factory will use this money to increase investment in the cabin stamping line at the factory to increase the localization rate in products, create a separate brand for VEAM Motor products, and promote the cooperation program with MAZ.

It is not clear whether the Government and the Ministry of Finance agree with this proposal or not.

Previously, Truong Hai Auto Corporation was allowed by the Government to extend the payment of 1,200 billion VND in taxes after submitting a similar application.

VnEconomy sources also said that businesses including Xuan Kien Auto Joint Stock Company (Vinaxuki), Thanh Cong Group Joint Stock Company, TMT Auto Joint Stock Company, Hoang Tra Company Limited, and Dong Phuong Auto Company Limited have also made similar recommendations.

According to the Law on Tax Administration and its guiding documents, taxpayers are entitled to an extension of tax and fine payment if they are unable to pay taxes on time due to “special difficulties”. The authority to extend the deadline is decided by the Prime Minister upon the proposal of the Ministry of Finance.

According to Tienphong. PH