Finance Ministry wants lower vehicle tax

In a letter to the Viet Nam Automobile Manufacturers Association, it proposes that the lower tax apply to vehicles of more than 10 seats from next year.

The ministry argues the lower tax would stimulate economic growth though the utilisation of such vehicles.

It would also honour Viet Nam’s commitment to the World Trade Organisation, WTO, and ASEAN.

The ministry has yet to provide details of any tax changes in accordance with these commitments.

But vehicles of less than nine seats could attract an import tax of about 70 % tax next year as part of the ASEAN commitment or 83 % in accordance with the WTO commitment.

Four-wheel-drive vehicles could attract 70 % tax based on the ASEAN commitment and 73 % tax in accordance with WTO commitment.

The prevailing tax is 83 %.