Car import tax is about to be reduced across the board

Imported cars will be subject to a tax rate of 68%-78%, instead of the current 72%-83%, according to the proposal of the Ministry of Finance.

Car import tax is currently at 72%-83%. Photo: Hoang Ha.

According to the draft on preferential tax for imported cars of the Ministry of Finance, from January 1, 2012, imported passenger cars with less than 10 seats will have their tax reduced from 3% to 5% compared to the current rate.

Of which, the type of vehicle with a tax rate of 82% will have an expected tax rate of 78%. Vehicles with a cylinder capacity of over 2.5 liters currently have an expected tax rate of 74%, instead of the current 77%. In particular, vehicle lines with a tax rate of 72% are expected to be reduced to 68%.

For trucks with a capacity of 5 tons or less, the tax rate is expected to decrease from 68% to 65%, starting from January 1, 2012. Vehicles with a capacity of over 5 tons to 10 tons will retain the tax rate of 50%. Similarly, vehicles with a capacity of over 10 tons to 20 tons, over 20 tons to 24 tons, over 24 tons to 45 tons and vehicles over 45 tons will retain the tax rates of 25%, 20%, 5% and 0%, respectively.

Also according to the draft of the Ministry of Finance, ambulances may be eligible for a preferential tax rate of 15%.

In addition, imported used cars are also subject to import tax adjustments by the Ministry of Finance. Accordingly, passenger cars with 16 seats or more and trucks with a total load of no more than 5 tons are subject to an import tax rate of 150%. In particular, cars with less than 15 seats are subject to absolute tax and a percentage rate according to current regulations.

The Ministry of Finance is consulting with relevant ministries, agencies and units on this tax rate and is expected to apply to all imported cars from countries joining the WTO, ASEAN bloc..., starting from January 1, 2012.

(According to VnExpress)