FM proposes higher import tax for used tractor-trucks

Bizhub | Fri, Jun 3, 2016 09:37:56 AM Share this on

The Ministry of Finance plans to raise the import tax on second-hand tractor-trucks, according to a document dispatched to the relevant ministries and sectors to gather their feedback.

The move would raise the import tax from five per cent to 30 per cent.

The ministry also wants to reduce the import tax on the components and parts of tractor-trucks and semi-trailers for domestic assembly and manufacturing to zero per cent from the current 7.5 per cent.

The adjustment of these import taxes is aimed at avoiding losses for the State budget, encouraging domestic assembly and production and creating fair competition among domestic auto businesses.

According to the Customs Office, the Vietnamese people paid US$675 million to import tractor-trucks and semi-trailers in 2015, of which $427 million was spent on importing vehicles from China.

Most of the imported tractor-trucks and semi-trailers were from China because the import tax on such vehicles is now zero per cent under the ASEAN-China Free Trade Agreement. It is easier for Chinese vehicles, well-known for their reasonable prices, to penetrate the Vietnamese market more deeply than vehicles from other markets.

The import tax on new and second-hand tractor-trucks and semi-trailers was five per cent and 20 per cent, respectively, for members of the World Trade Organisation, of which Viet Nam is one. — VNS

Source: Bizhub