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Taxman wrangles over pickup truck fee
2011-1007
The HCMC Tax Bureau is still indecisive over whether to charge a 2% tax rate for registration of pickup trucks under a now-invalid regulation, or to slap a 10% rate under a new rule that has not yet taken effect. Therefore, truck buyers are simply told to wait.
According to Decree 45/2011/ND-CP taking effect from September 1, a 2% tax imposed on pickup truck earlier would be ineffective while Circular 124, which guides the implementation of Decree 45, stipulates a fee level at 10%-20%.
There remains a vacuum in exercising the law, so pickup buyers in HCMC do not know how much they will have to pay for the vehicle registration. Elsewhere in the country, tax agencies in localities such as Dong Nai and Quang Ngai are still charging a 2% tax rate only.
Meanwhile, a leader of the General Department of Tax asserted that the circular was the base to collect registration fees, but while pending its validity, the procedures should be carried out in line with the current 2% tax rate.
An official distributor of Nissan said that his company had sold six pickups to customers but had failed to pay registration fees until now.
“Every time we ask for information, tax officials (in HCMC) tell us to wait until they get instructions from higher authorities,” complained the distributor.
He also noted that a number of district tax offices had accepted a fee level at 10% before but now all they have halted receiving registration documents.
Tran Dinh Cu, deputy head of the HCMC Taxation Department, told the Daily that his department had petitioned for guidelines 10 days ago but no response had come from the General Department of Tax so far.
“Therefore, we have no choice but to wait for directions,” Cu explained.
Numerous traders in HCMC earlier complained that they couldn’t finish pickup truck registration from September 1 since related agencies stopped receiving registration applications or asked for a 10% fee payment.
According to Decree 45/2011/ND-CP taking effect from September 1, a 2% tax imposed on pickup truck earlier would be ineffective while Circular 124, which guides the implementation of Decree 45, stipulates a fee level at 10%-20%.
There remains a vacuum in exercising the law, so pickup buyers in HCMC do not know how much they will have to pay for the vehicle registration. Elsewhere in the country, tax agencies in localities such as Dong Nai and Quang Ngai are still charging a 2% tax rate only.
Meanwhile, a leader of the General Department of Tax asserted that the circular was the base to collect registration fees, but while pending its validity, the procedures should be carried out in line with the current 2% tax rate.
An official distributor of Nissan said that his company had sold six pickups to customers but had failed to pay registration fees until now.
“Every time we ask for information, tax officials (in HCMC) tell us to wait until they get instructions from higher authorities,” complained the distributor.
He also noted that a number of district tax offices had accepted a fee level at 10% before but now all they have halted receiving registration documents.
Tran Dinh Cu, deputy head of the HCMC Taxation Department, told the Daily that his department had petitioned for guidelines 10 days ago but no response had come from the General Department of Tax so far.
“Therefore, we have no choice but to wait for directions,” Cu explained.
Numerous traders in HCMC earlier complained that they couldn’t finish pickup truck registration from September 1 since related agencies stopped receiving registration applications or asked for a 10% fee payment.
Source: SGT
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