Car imports in the first month of the year dropped dramatically

Although it was predicted in advance due to the pressure of tax policy, this sharp decline still somewhat shocked the market.

Entering 2016, the import turnover of completely built-up cars immediately dropped shockingly compared to the end of 2015...

A report from the General Statistics Office (Ministry of Planning and Investment) said that the number of cars imported into the country in January 2016 only reached about 7,000 units, equivalent to a turnover value of 175 million USD.

Thus, compared to December 2015, the import turnover of completely built-up cars in the first month of this year has decreased by half in terms of quantity; in terms of value, the decline rate is even deeper.

Also according to the report of the General Statistics Office, the number of imported cars in the last month of last year reached 14,000 units, this is also a record level that has been maintained continuously since October 2015.

Meanwhile, the turnover value also officially set a new record when it reached 397 million USD, far exceeding the previous months.

Although it was predicted in advance due to the pressure of tax policy, this sharp decline still somewhat shocked the market.

As mentioned in many articles published on VnEconomy at the end of 2015, since January 1, 2016, completely built-up (CBU) imported cars have been subject to a new method of calculating special consumption tax.

Because it is no longer calculated on the CIF price + import tax as before but must be calculated on the wholesale price of the importer, the retail price of CBU cars is pushed up quite high.

In fact, as soon as the clock turned to the new year, car distributors also applied new retail prices with an increase of 2-10%.

Anticipating the difficulties they will face in the new year, authorized auto distributors have made adjustments to import contracts with foreign partners.

This has partly pushed up the turnover of the last months of 2015 and ended on the last day of the year to move to a new state.

Many auto distributors said that business activities in the first phase of this year will also have to be held back, not daring to apply specific policies because they still have to continue waiting for new adjustments related to special consumption tax.

Specifically, because the Law amending and supplementing a number of articles of the Law on Special Consumption Tax was not passed at the National Assembly session at the end of 2015, it will have to wait for approval at the next session scheduled to take place in March 2016.

And up to now, the detailed tax rates in the new law are still receiving comments, so it is possible that there will be further adjustments before being passed.

According to Soha.vn