Several types of vehicles will enjoy import tariff cuts beginning nextyear in line with Vietnam's commitment to the World Trade Organisation(WTO) on tax reduction.
According to the Ministry of Finance,which drafted the plan, all tariff cuts will take effect on January 1,2015. It said the tax on four-wheel drive (4WD) vehicles would bereduced from 70 percent to 59 percent while the import tax on truckswith a loading capacity of less than five tonnes would be reduced from59 percent to 56 percent.
The tax on motor homes, orself-propelled recreational vehicles which offer living accommodation,and on cars with less than 10 seats and an engine capacity of less than2.5 litres, will be cut from 67 percent to 64 percent. The tariff onmotorcycles, sidecars and mopeds will also be reduced from 47 percent to40 percent.
Meanwhile, ASEAN members' auto imports are alreadyreceiving a preferential 50 percent import tariff since early 2014 as aresult of the ASEAN Trade in Goods Agreement (ATIGA). In addition, undercommitments to the ASEAN, auto import taxes in 2018 will be completelyabolished.
ASEAN will waive taxes on car imports between ASEANmember countries, as well as from Japan, the Republic of Korea andChina, who are all party to the agreement.
The tax cut poses aserious threat to the country's auto industry, which is expected tocompete with the price and quality of imports.
According to theGeneral Office of Statistic, Vietnam imported 44,000 cars in the firstnine months of this year worth 938 million USD, a 74 per-cent increasein quantity and a 90.2 percent increase in value year-on-year.-VNA
According to the Ministry of Finance,which drafted the plan, all tariff cuts will take effect on January 1,2015. It said the tax on four-wheel drive (4WD) vehicles would bereduced from 70 percent to 59 percent while the import tax on truckswith a loading capacity of less than five tonnes would be reduced from59 percent to 56 percent.
The tax on motor homes, orself-propelled recreational vehicles which offer living accommodation,and on cars with less than 10 seats and an engine capacity of less than2.5 litres, will be cut from 67 percent to 64 percent. The tariff onmotorcycles, sidecars and mopeds will also be reduced from 47 percent to40 percent.
Meanwhile, ASEAN members' auto imports are alreadyreceiving a preferential 50 percent import tariff since early 2014 as aresult of the ASEAN Trade in Goods Agreement (ATIGA). In addition, undercommitments to the ASEAN, auto import taxes in 2018 will be completelyabolished.
ASEAN will waive taxes on car imports between ASEANmember countries, as well as from Japan, the Republic of Korea andChina, who are all party to the agreement.
The tax cut poses aserious threat to the country's auto industry, which is expected tocompete with the price and quality of imports.
According to theGeneral Office of Statistic, Vietnam imported 44,000 cars in the firstnine months of this year worth 938 million USD, a 74 per-cent increasein quantity and a 90.2 percent increase in value year-on-year.-VNA
