Saving domestic cars, considering adjusting tax calculation prices and registration fees for pickup trucks

The Ministry of Finance has just been asked to strictly manage the tax value of imported cars, the origin of completely built-up cars (mainly from ASEAN) and study and re-evaluate the special consumption tax and registration fee for pickup trucks as measures to save domestic cars when import tax is reduced according to international commitments.

According to statistics from the General Department of Customs, in the first two months of 2017, the number of imported cars to Vietnam increased rapidly with 15,275 cars, an increase of more than 4,000 compared to the same period in 2016 (11,200 cars).

Accordingly, the Government has just directed relevant ministries and branches to propose solutions to develop the automobile industry and study self-defense measures if imported cars increase suddenly, affecting domestic production when Vietnam reduces taxes due to integration commitments.

The Ministry of Industry and Trade, the Ministry of Finance, the Ministry of Science and Technology and other relevant ministries and sectors are responsible for comprehensively assessing the automobile market and having appropriate policies for domestic automobile support industry enterprises and automobile joint ventures in the coming time.

The government assessed that although Vietnam's automobile industry has changed a lot, it is still facing many challenges and difficulties that will be even greater when the import tax on completely built-up cars from ASEAN to Vietnam is 0%.

Therefore, the Government directed the Ministries and branches to propose to the Prime Minister to amend, supplement and promulgate new mechanisms and policies to promote the development of the supporting industry, especially for large investors and leading enterprises.

The Ministry of Finance is required to strictly manage the tax value of imported vehicles and the origin of completely built-up vehicles (mainly from ASEAN) to combat trade fraud and study and re-evaluate the special consumption tax and registration fees for pickup trucks and propose appropriate adjustments.

For imported used cars, promptly modify and supplement them to comply with policies, not to take advantage of, commit commercial fraud, and not to allow poor quality cars to be imported into Vietnam.

According to statistics from the General Department of Customs, in the first two months of 2017, the number of imported cars to Vietnam increased rapidly with 15,275 cars, an increase of more than 4,000 compared to the same period in 2016 (11,200 cars).

Notably, the price of imported cars to Vietnam in February 2017 only reached an average of 450 million VND/car and imported cars mainly came from countries such as India, Indonesia, and Thailand.

Faced with the above situation, the General Department of Customs has directed functional units to review the declared prices of imported vehicles, including cars imported from India, to prevent trade fraud and market manipulation.

Also related to the imported car market, on March 9, the Ministry of Industry and Trade issued a notice on Circular 04/2017/TT-BTC amending and supplementing Circular 20 on the import of passenger cars with 9 seats or less. Accordingly, enterprises importing cars with 9 seats or less when carrying out import procedures do not need a certificate of qualified warranty and maintenance facility issued by a competent authority as before, but must still have a genuine authorization letter.

According to Labor Newspaper