Import tax on used cars will increase sharply

The Ministry of Finance has just submitted to the Government an import tax plan for used cars. Accordingly, used cars will be subject to additional tax calculated as a percentage instead of just being subject to the current absolute rate.

Compared to previous tax adjustments, this time the Ministry of Finance not only imposes absolute tax on used cars but also calculates tax at a percentage rate similar to that of imported new cars. In particular, the tax rate for cars with a capacity of less than 2.0 liters is basically unchanged.

However, luxury and super luxury cars have very high tax rates. After completing the price declaration, customs will impose a tax at the same percentage as a new car. After that, the car will be subject to an additional absolute tax of 5,000 or 10,000 USD per car, depending on the type. Import tax on new cars is currently at 80-83%.

Thus, a used car imported to Vietnam will be subject to two types of tax – absolute and percentage. While currently, imported used cars are only subject to absolute tax.

According to a source from the Ministry of Finance, when applying this new tax formula, it will be extremely difficult to import used cars into the market, especially luxury and super luxury cars. At that time, a used car imported into the market can be taxed double or triple the old rate.

In addition to increasing taxes, the agency also asked the General Department of Customs to continue studying control measures for imported vehicles, including new and used ones.

According to VnExpress.net