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Thaco asks Gov’t to stabilize automobile tax policy
2011-0613
The Government needs to have a consistent tax policy to help automakers develop business and better cope with the future competition when the import tariff is slashed to zero by 2018, said the local auto company Thaco.
Tran Ba Duong, chairman and CEO of Truong Hai Auto Joint Stock Co., or Thaco, complained in a working session with Deputy Prime Minister Hoang Trung Hai on Saturday that unexpected changes to the tax policy has caused numerous difficulties for automakers. Duong said that the Ministry of Finance had recently changed taxes in an unpredictable manner, keeping local automakers guessing about the country’s automobile development policy. He was speaking to Deputy PM Hoang Trung Hai as the senior Government leader called on his auto factory in Chu Lai Open Economic Zone in the central province of Quang Nam.
He suggested that the Government stabilize the tax policy so that Thaco could invest bravely as well as call on other partners to invest into Chu Lai Industrial Zone, manufacture auto components and join the global value chain.
A stable and predictable tax policy towards automakers will help them better prepare for the future competition, especially when all automobiles imported from ASEAN will enjoy a zero-rate tax by 2018, he said.
He also requested the Government to have a preferential policy for manufacturers of auto spare parts and components so as to promote the development of the automobile supporting industry.
At the meeting, Deputy PM Hoang Trung Hai appreciated the development of Truong Hai. He suggested the company to continue efforts to develop into a strong group, not only to lead the local market, but also to export its products.
Hai said that the Government also supported Quang Nam’s proposal to develop an auto manufacturing center in Chu Lai Open Economic Zone.
Last year, authorities of the province asked the Government and ministries to set up a national auto manufacturing industry center in the zone.
As planned the 1,000-hectare project at Tam Anh Industrial Park in Chu Lai was envisaged to turn out 300,000 units a year, including passenger and commercial vehicles. The project will cover 300 hectares for the first phase.
Authorities of the zone will invite foreign and local investors to invest into the park and that the project would create hundreds of jobs.
The zone is now home to a large auto complex of Thaco. In 2007 the zone saw Thaco Kia open a factory manufacturing passenger cars equipped with the most modern technology in the region. The factory was invested with more than US$36 million.
In early 2009, the company succeeded in assembling its most modern and luxurious model, Kia New Carens.
The open economic zone, which was established in 2003, covers 27,000 hectares in Nui Thanh District.
Tran Ba Duong, chairman and CEO of Truong Hai Auto Joint Stock Co., or Thaco, complained in a working session with Deputy Prime Minister Hoang Trung Hai on Saturday that unexpected changes to the tax policy has caused numerous difficulties for automakers. Duong said that the Ministry of Finance had recently changed taxes in an unpredictable manner, keeping local automakers guessing about the country’s automobile development policy. He was speaking to Deputy PM Hoang Trung Hai as the senior Government leader called on his auto factory in Chu Lai Open Economic Zone in the central province of Quang Nam.
He suggested that the Government stabilize the tax policy so that Thaco could invest bravely as well as call on other partners to invest into Chu Lai Industrial Zone, manufacture auto components and join the global value chain.
A stable and predictable tax policy towards automakers will help them better prepare for the future competition, especially when all automobiles imported from ASEAN will enjoy a zero-rate tax by 2018, he said.
He also requested the Government to have a preferential policy for manufacturers of auto spare parts and components so as to promote the development of the automobile supporting industry.
At the meeting, Deputy PM Hoang Trung Hai appreciated the development of Truong Hai. He suggested the company to continue efforts to develop into a strong group, not only to lead the local market, but also to export its products.
Hai said that the Government also supported Quang Nam’s proposal to develop an auto manufacturing center in Chu Lai Open Economic Zone.
Last year, authorities of the province asked the Government and ministries to set up a national auto manufacturing industry center in the zone.
As planned the 1,000-hectare project at Tam Anh Industrial Park in Chu Lai was envisaged to turn out 300,000 units a year, including passenger and commercial vehicles. The project will cover 300 hectares for the first phase.
Authorities of the zone will invite foreign and local investors to invest into the park and that the project would create hundreds of jobs.
The zone is now home to a large auto complex of Thaco. In 2007 the zone saw Thaco Kia open a factory manufacturing passenger cars equipped with the most modern technology in the region. The factory was invested with more than US$36 million.
In early 2009, the company succeeded in assembling its most modern and luxurious model, Kia New Carens.
The open economic zone, which was established in 2003, covers 27,000 hectares in Nui Thanh District.
Source: SGT
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