Car import tax cut; analysts don‘t expect big price change

Vietnam’s import tariffs on several cars dropped 3-12 percent Friday in line with a new decree by the Ministry of Finance, but analysts don’t expect much of a response.

The tax on cars with less than nine-seat but with gas cylinders of at least 2.5 liters will drop 3 percent to 80 percent, the decree said.

Dump trucks not designed for national highways will see tax cuts of 5-12 percent.

But insiders said the vehicles wouldn’t be much cheaper as the tax reduction was small and the General Customs Department in March already set minimum taxable prices for hundreds of imported car models between 2 and 20 percent higher than at the end of last year, which can translate into an increase of up to thousands of US dollars that buyers have to pay, according to Vietnam Economic Times.

The price list has been changed twice since October 2009.

Imported car market is not in a good time. Following the Toyota technical scandal, many people are concerned about buying cars from unofficial distributors, Vietnam Economic Times said Thursday.

Many distributors have offered promotions, discounts and new products in an attempt to boost sales.