OVs likely to pay taxes for their used cars imported to Vietnam

The Ho Chi Minh City Customs Office has just sent its proposal to the Vietnam General Department of Customs to ask the Finance Ministry to impose import taxes on vehicles of overseas Vietnamese.

Under Circular 20 issued by the Ministry of Trade and Industry, if overseas Vietnamese return and bring their used means of transport to the country, they do not have to pay for import and VAT taxes.     

But, figures show that a number of overseas Vietnamese make use of the Circular to bring many automobiles and motorbikes to their homeland, which causes a big loss to the Customs receipts on one hand and disorder in transport means management on the other hand.

According to the proposal, means of transport imported by overseas Vietnamese should be have import taxes imposed but can be exempted from VAT taxes.

Meanwhile, the General Department of Customs said that imports of cars into Vietnam saw a sharp fall since the implementation of Circular 20, almost a year ago.

Figures from the Statistics General Office show that Vietnam has imported some 9,000 cars worth US$170million in April, a slight fall against March, but was only 40 per cent of that in the same time last year.