1,200 diplomatic cars to pay tax arrears

The Ministry of Finance said it has completed collecting feedback from relevant ministries and agencies on its proposal to collect taxes in arrears from cars bearing diplomatic plates owned by non-diplomats in the country.

Under the proposal, which will be submitted to the government for final approval, the ministry rules that a tax of 5 – 90 percent will be levied on around 1,200 bogus diplomatic cars that are in use throughout Vietnam, Deputy Minister of Finance Do Hoang Anh Tuan said.

Such vehicles will also be subject to the special consumption tax and value-added tax, with the total collection estimated at VND40-50 billion, added Tuan.

Bogus ‘diplomatic’ cars are those once owned by authentic foreign diplomats who later sold them to non-diplomats after their tenure ended in Vietnam.

In such cases, the diplomatic cars areturned into normal cars, but they have not been taxed yet.

“Though the tax in arrear collection is not too big, what matters here is that we should ensure fairness as many individuals have takenadvantage of the duty-free policy on diplomatic cars to evade taxes,” Tuan told the media.

“So, individuals or organizations purchasing cars with diplomatic plates should exchange them for normal plates and complete necessary procedures to legalize their vehicles.”

Between 1998 and the end of August 2009, 4,366 cars which belonged to diplomatic agencies were imported, according to figures from the Ministry of Finance.

Of these, 230 cars have been re-exported, and 1,758 cars have been transferred or ruined.

Of the remaining 2,378 cars, 1,158 cars are said to be misused and are subject to the tax arrears collection.