Prime Minister Nguyen Tan Dung on June 29 approved the issue of a new import tax rate for used passenger cars with fewer than 15 seats.
As of August 15, passenger cars of less than 10 seats, with less than 1.0 litre cylindrical capacity, will be levied a fixed tax of 3,500 USD while those with cylindrical capacities ranging from 1.0 to 1.5 litres, will be subject to a fixed tax of 8,000 USD.
The 10-15 seat passenger cars with cylindrical capacities of 2.0 litres or less will be subject to a fixed tax of 9,500 USD. A car with a cylindrical capacity of between 2.0 litres to 3.0 litres will be subject to a fixed tax of 13,000 USD while a car with a cylindrical capacity larger than 3.0 litres, will be levied at 17,000 USD.
The Prime Minister has allowed the Ministry of Finance to increase or reduce the number of imported vehicles within a 20 percent range and within World Trade Organisation regulations.
Both 6-9 seat sedan and multi-purpose vehicles are forecast to be heavily affected by new fixed tax rates, which are likely to raise domestic prices, especially those of luxury vehicles.
The PM has additionally permitted the Ministry of Finance to keep a tight grip on car imports with the aim of curbing trade fraud, the number of cars on the road and import values.
The new decision 36/2011/QD-TTG will replace existing regulations based on the promulgation of fixed taxes on used cars enacted in March 28, 2006./.
As of August 15, passenger cars of less than 10 seats, with less than 1.0 litre cylindrical capacity, will be levied a fixed tax of 3,500 USD while those with cylindrical capacities ranging from 1.0 to 1.5 litres, will be subject to a fixed tax of 8,000 USD.
The 10-15 seat passenger cars with cylindrical capacities of 2.0 litres or less will be subject to a fixed tax of 9,500 USD. A car with a cylindrical capacity of between 2.0 litres to 3.0 litres will be subject to a fixed tax of 13,000 USD while a car with a cylindrical capacity larger than 3.0 litres, will be levied at 17,000 USD.
The Prime Minister has allowed the Ministry of Finance to increase or reduce the number of imported vehicles within a 20 percent range and within World Trade Organisation regulations.
Both 6-9 seat sedan and multi-purpose vehicles are forecast to be heavily affected by new fixed tax rates, which are likely to raise domestic prices, especially those of luxury vehicles.
The PM has additionally permitted the Ministry of Finance to keep a tight grip on car imports with the aim of curbing trade fraud, the number of cars on the road and import values.
The new decision 36/2011/QD-TTG will replace existing regulations based on the promulgation of fixed taxes on used cars enacted in March 28, 2006./.
