Customers at a Toyota showroom in Hanoi (Photo: Toyota Motor Vietnam) Hanoi (VNS/VNA) - The Vietnam Automobile Manufacturers’ Association(VAMA) has proposed the Government reduce value-added tax (VAT) andregistration fees for car customers by 50 percent, reports vietnamnet.vn.
The proposal was made as a series of automobile factories in Vietnam face therisk of reducing production, suspending operations for a while, or even closingdue to the heavy impact of the COVID-19 pandemic. This will cause hundreds ofthousands of job losses.
VAMA wanted the Government to extend the payment deadlines of VAT and specialconsumption tax for businesses from this month to September this year, andcorporate income tax until March 31 next year. Meanwhile, the personal incometax should be decreased for employees.
“It’s necessary to promulgate a general stimulus package for economicdevelopment, extend commercial loan packages so that enterprises have time torecover production and business and pay debts,” VAMA said.
If VAMA's proposals are approved by the Government, the price of cars of allkinds is expected to decline sharply.
Some VAMA members have failed to conduct factory expansion because foreignengineers, experts and skilled workers are not able to enter Vietnam due toimmigration restrictions. Meanwhile, some facilities and equipment to expandfactories have not yet been imported, affecting the implementation progress ofprojects.
In terms of part supply, it is forecast that many part producers and automakerswill be directly affected because many countries have restricted travellingfrom one or many areas, even the whole country to deal with the COVID-19pandemic. Therefore, many businesses may reduce production or even considerclosing for a certain period.
According to a report by the Ministry of Industry and Trade’s Department ofIndustry, Vietnam imported auto parts worth nearly 4 billion USD in the firsttwo months of this year, the main volume of which came from the Republic of Koreawith 1.14 billion USD (28.5 percent), Japan 0.72 billion USD (18.04 percent)and China 0.7 billion USD (18 percent). It’s estimated that automakers willlack parts for production at the end of this month./.
VNA
