Import tax for used cars to be adjusted from August 15

Prime Minister Nguyen Tan Dung has signed Decision No 36/2011/QD-TTg on issuing an import tax rate for used cars of 15 seats or less.

Accordingly, used cars from nine seats or less with a cylinder capacity of over 1.5 litres are dutiable at an absolute rate and relative rate.

In particularly, used cars from under nine seats with a cylinder capacity between 1.5 litres and less than 2.5 litres will be dutiable at a tax rate equal to new cars of the same type, added to the absolute rate of 5,000 USD/car. Cars with a cylinder capacity between 2.5 litres and above after applying the above tax rates must add an additional 15,000 USD/car.

For other types of vehicle, the absolute rate is increased. For vehicles from 10 seats to 15 seats (including driver) up to 2,000cc, the tax rate is 9,500 USD (an increase of 1,500 USD compared to current regulations); between 2,000cc and 3,000cc increase from 12,000 USD/car to 13,000 USD/vehicle; above 3,000cc, the tax rate has increased to 17,000 USD/vehicle.

For cars from nine seats or less (including driver) with a cylinder capacity of less than 1,000cc, the absolute tax rate increases by 500USD to 3,500 USD/car; between 1,000cc and 1,500cc , the tax rate increases by 1000 USD to 8000 USD/car.

The PM asked the Ministry of Finance to issue a decision on increasing or reducing by 20% the tax rates regulated at Article 1 of this Decision, but not over the ceiling level in accordance with Vietnam’s commitment of joining the World Trade Organization (WTO), to control and regulate the domestic consumption market and prevent commercial fraud and to report to the Prime Minister in case of the adjustment being over 20%.

The new tax rate will be applied from August 15, 2011

(CPV)

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