Imported used cars incur tens of millions of dong in additional taxes
Each imported used car with less than 9 seats must bear an additional 1,500-2,000 USD in taxes due to changes in the absolute tax schedule.
Since the beginning of September, the absolute tax rate for some goods under Decree 122/2016 has changed, increasing the rate for vehicles with less than 9 seats. This is a fixed amount added to the import tax on used goods (which is calculated similarly to new goods) to avoid loss of revenue for the State. The reason for this tax calculation is that it is very difficult for the management agency to determine whether the declared value for tax calculation of used goods is correct or not.
The Decree maintains the absolute tax rate for used cars with 10-15 seats, but increases the tax rate for cars with less than 9 seats from 1,500 USD to 2,000 USD per car. This causes the import tax on used cars to increase accordingly. The specific rates are as follows:
| Vehicle type | Absolute tax rate | New rules | Old rules |
| Vehicles with less than 9 seats | Under 1,000 cc | 5,000 USD | 3,500 USD |
| Over 1,000 cc | 10,000 USD | 8,000 USD | |
| 10-15 seater car | Under 2,000 cc | 9,500 USD | 9,500 USD |
| 2,000cc - 3,000cc | 13,000 USD | 13,000 USD | |
| Over 3,000 cc | 17,000 USD | 17,000 USD |
Thus, for an old car imported to Vietnam, along with special consumption tax and value added tax (as with a new car), the import tax will increase by 1,500 USD or 2,000 USD per car, depending on the capacity. Then the selling price will have to increase by tens of millions of VND. Moreover, when the import tax payable is increased (from 30 to 40 million VND), the special consumption tax and value added tax will also increase accordingly.This will also greatly affect the competitiveness of used cars in the current market.
According to VNE
