The Ministry of Finance has just responded to the petition of the Vietnam Automobile Manufacturers Association (VAMA) on additional support policies for businesses facing difficulties caused by the Covid-19 pandemic.
The Ministry said that over the past time, to solve difficulties for businesses, organizations, households and individuals, including those in the automobile manufacturing and assembly industry, caused by the Covid-19 pandemic, many policies to support all economic sectors have been issued.
Specifically, the Ministry has submitted to the Government to issue Decree No.41/2020/ND-CP on an extension of deadline for tax payment and land rent; Decree No. 109/2020/ND-CP on extension of payment deadline for special consumption tax for domestically manufactured or assembled automobiles; Decree No. 70/2020/ND-CP on reduction of 50% of registration fee for domestically manufactured and assembled automobiles by December 31, 2020; Decree No. 52/2021/ND-CP on extension of time for payment of value added tax, corporate income tax, personal income tax and land rent in 2021.
After reviewing these support policies, the Ministry found that the proposal to reduce 50% of the registration fee for newly registered cars is inappropriate in the current context. Accordingly, the Ministry of Finance suggested that VAMA members comply with the current regulations on registration fees.
Recently, to promote the development of the domestic automobile industry in the new context, Decree No. 57/2020/ND-CP amends some regulations of Decree No. 122/2016/ND-CP and Decree No. 125/2017/ND-CP on the tax incentive program for car manufacturing and assembly, including: adding electric cars, cars using batteries, hybrid cars, cars using biofuel, cars using natural gas to promote the development of environmentally friendly vehicles; amending of regulations on vehicle models and simplifying related administrative procedures; amending the minimum general output criteria of vehicle groups and the minimum specific output of auto models to suit the current situation of the automobile manufacturing and assembly industry in the context of the pandemic and to be consistent with the industry’s development strategy and planning, taking into account forecasting factors in the future.
In the coming time, the Ministry of Finance will update the data and production situation of domestic automobile manufacturing and assembling enterprises and developments, and the impact of the Covid-19 pandemic and coordinate with relevant ministries and agencies in order to suggest appropriate policies for the domestic automobile industry.