Exemption from import tax on equipment for assembling buses

The Ministry of Finance issued Circular No. 185/2012/TT-BTC dated October 30, 2012 guiding the exemption of import tax on spare parts and components for the production and assembly of buses of the Investment Project on the development of public passenger transport by bus in Hanoi and Ho Chi Minh City.

Photo: Anh Tuan/VNA

This Circular is issued to implement one of the Government's solutions to effectively overcome traffic congestion in the two cities of Hanoi and Ho Chi Minh City, based on the Prime Minister's approval in Official Dispatch No. 2366/VPCP-KTTH dated April 10, 2012 and the consensus of the Ministries and branches.

To be exempted from import tax, this Circular clearly states that investment projects must meet a number of conditions: Must be approved by a competent State agency in the 2012-2015 period under the guidance of the Ministry of Transport, clearly defining the project implementation time; quantity, type, quality, value of spare parts and components that need to be imported to manufacture and assemble buses domestically.

The basis for determining domestically produced spare parts and components is the List of domestically produced machinery, equipment, spare parts, specialized means of transport, raw materials, supplies, and semi-finished products issued by the Ministry of Planning and Investment in effect at the time of registration of the project's import declaration.

In addition, Circular No. 185/2012/TT-BTC provides specific guidance on a number of import tax exemption procedures such as: registration of the list of imported goods exempted from tax, documents, tax exemption procedures and settlement of import and use of tax-exempt goods.

The Circular takes effect from December 14, 2012./.

According to (TTXVN)-LT