Import tax is 0%, which cars will be discounted?

When car import tax is 0%, the price of many imported car models will decrease, but the decrease will depend on the type of car and many factors.

According to the plan, by January 1, 2018, the import tax on cars will be reduced to 0%. Many people believe that with this reduction, Vietnamese consumers will be able to own cars at the same price as the Thai and Malaysian markets...

In general, when car import tax is reduced to 0%, the price of many imported car models will decrease, but the decrease will depend on the type of car and many factors.

According to plan, by January 1, 2018, car import tax will be reduced to 0%.

Experts say that the type of car that will get the biggest discount when the import tax is reduced to 0% is the high-end segment, with a cylinder capacity of over 3.0 and a price of billions of VND or more. These types of cars can get a discount of 200 million VND or more, depending on the model.

In addition, to enjoy preferential tax rates in the ASEAN region, a car model must meet a 40% localization rate for spare parts. This is a detail that is rarely mentioned when car manufacturers announce technical specifications, so it is not easy to determine and if there are, the number of cars that meet this standard in Vietnam is not much, each car manufacturer usually has only 1-2 models. This means that only a very few car models imported from ASEAN are subject to tax reduction and can be discounted.

According to experts, even if import tax is reduced to 0%, domestic car prices are unlikely to decrease significantly. Because in addition to import tax, we still have many other tariff and non-tariff "barriers", and they are not affected by free trade agreements or international commitments.

Typical examples include special consumption tax, value added tax, registration fees, import quotas, road fees, etc. Changing these taxes and fees can significantly change the price of imported cars and we do not yet know the final result.

According to VNN