Illustrative image (Source: VNA)
Hanoi (VNA) – The special consumption tax for cars with engines of 2,500 – 3, will increase to 55 percent from 50 percent starting from July 1.

The move is in line with the Law on amendments and supplements to several articles of the Law on Value-Added Tax, the Law on Special Consumption Tax and the Law on Tax Management that take effect the same day.

The highest tax increases are applied for vehicles of 3,000 – 6, and above.

Specifically, cars with 3,000-4,, 4,000-5, and 5,000-6, engines will be subject to respective tax rises to 90 percent, 110 percent and 130 percent from 60 percent in the past, while the tax rate for those with engines of more than 6, rises to 150 percent.

Meanwhile, cars with engines of 1, and below will enjoy a tax decrease to 40 percent from 45 percent, and to 35 percent from January 1, 2018.

The tax stays the same at 50 percent for vehicles with 2,000-2,500 engines.

According to the Finance Ministry, the tax adjustment is in line with Vietnam’s automobile development strategy, which encourages the production and use of small cars that suit the infrastructural conditions and income level.-VNA