With tax and fee decreases, automobiles will be cheaper than ever

If the government agrees to slash taxes and fees for domestically assembled cars, this will be a ‘doping dose’ for domestic automobile manufacturers and consumers.

The Ministry of Planning and Investment (MPI) is drafting the government’s resolution on solutions to help ease difficulties for production and business activities caused by Covid-19 and to speed up disbursements for public investments.

With tax and fee decreases, automobiles will be cheaper than ever



The draft resolution mentions two solutions: reducing the registration tax by 50 percent for domestically manufactured automobiles until the end of 2020 in order to stimulate domestic demand, or creating policies on preferential luxury tax for domestically made cars.

Previously, the Vietnam Automobile Manufacturers Association (VAMA) and the Ministry of Industry and Trade (MOIT) made similar proposals to the government.

The 50 percent reduction in registration tax would help slash automobile prices and stimulate demand for domestically made products in the context of Covid-19.

The 50 percent reduction in registration tax would help slash automobile prices and stimulate demand for domestically made products in the context of Covid-19.

 

Meanwhile, the proposal on preferential luxury tax policy is considered a long term solution to help reduce car prices. This kind of tax now makes up a large proportion of automobile prices.

If the proposals get the government’s nod, consumers would see benfeits as domestically-made cars will see prices decrease considerably, especially cars with fewer than 9 seats, which now have the highest luxury tax rates.

At present, the registration tax rates for fewer than 9-seat cars are 10 percent in most cities and provinces, and 12 percent in Hanoi.

It is expected that the buyers of many car models will benefit from the new policies, including Vios, Innova and Fortuner from Toyota, the models from Hyundai, Kia and Mazda, some models from Mercedes Benz and all products from VinFast. These are all domestically assembled models and the best selling items of the manufacturers.

Of these, some models have retail prices of up to billions of dong. VinFast Lux SA2.0, for example, has taxable price of VND1.8589 billion, so buyers can save up to VND111.534 million if they register their cars in Hanoi.

Meanwhile, the buyers of Toyota Vios G version, priced at VND570 million, can save up to VND34.2 million.

The proposed tax cuts have been applauded by automobile manufacturers and buyers. Covid-19 has hit the domestic automobile market hard. VAMA reported that only 52.557 cars were sold in Q1, a decrease of 33 percent compared with the same period last year.

TC Motor reported that it sold only 15,362 products during the same time, a decrease of 8.5 percent.

In related news, some automobile manufacturers, including Toyota Motor Vietnam, Honda Vietnam and TC Vietnam, have re-started their production after a couple of weeks of interruption because of Covid-19. Mercedes Vietnam plans to resume operation of the factory in HCM City on April 27. 

Mai Lan

VN automobile sales fall to 5-year low

VN automobile sales fall to 5-year low

Car sales have dropped to a 5-year low and may continue to slide if the pandemic persists.

Honda Vietnam resumes automobile, bike production from April 23

Honda Vietnam resumes automobile, bike production from April 23

Honda Vietnam announced on late April 22 that it will resume the production of automobiles and motorbikes from April 23 after 22 days of suspension to prevent the COVID-19 pandemic.

 
 

Other News

.
Petrol, animal feed, fertilizer prices cause higher production costs
Petrol, animal feed, fertilizer prices cause higher production costs
FEATUREicon  23/11/2021 

The increase in price of fuels and input materials of many products has occurred in 2021. Notably, the price fever of many commodities has not shown any signs of "cooling down".

Vietnam eyes 4 GW offshore wind power capacity by 2030
Vietnam eyes 4 GW offshore wind power capacity by 2030
BUSINESSicon  23/11/2021 

Vietnam will increase offshore wind power capacity to 4 GW from 1 GW and onshore wind power capacity to nearly 17.34 GW from about 1.26 GW by 2030, according to the latest draft of the National Power Development Plan VIII.

Use of Fintech services rises 3.5 times in 4 years in Vietnam
Use of Fintech services rises 3.5 times in 4 years in Vietnam
BUSINESSicon  23/11/2021 

In only four years, the rate of Vietnamese using services of Fintech companies has increased from 16% to 56%. 

Banks await more foreign strategic investors
Banks await more foreign strategic investors
BUSINESSicon  22/11/2021 

Several banks are currently issuing dividend paying shares as well as making strong efforts in finding more foreign strategic investors to increase capital. 

Trading value at stock market reaches record high
Trading value at stock market reaches record high
FEATUREicon  22/11/2021 

Cash keeps flowing into the stock market, including during trading sessions when the VN Index falls.

VIETNAM BUSINESS NEWS NOVEMBER 22
VIETNAM BUSINESS NEWS NOVEMBER 22
BUSINESSicon  22/11/2021 

Vietnamese Ambassador to Australia Nguyen Tat Thanh attended a ceremony to inaugurate the Vietnam-Australia Trade and Investment Promotion Centre on November 20.

Vietnam's import-export revenue forecast to hit new record in 2021
Vietnam's import-export revenue forecast to hit new record in 2021
BUSINESSicon  22/11/2021 

The Ministry of Industry and Trade (MoIT) has forecast that total import-export revenue this year may reach a new record, at between 640 - 645 billion USD, with a slight trade deficit.

Vietnam – RoK Industrial Park to take shape in Hung Yen
Vietnam – RoK Industrial Park to take shape in Hung Yen
BUSINESSicon  22/11/2021 

The northern province of Hung Yen has issued a decision on the establishment of the Vietnam – Republic of Korea Economic Cooperation Industrial Park (IP).

Land prices rise in suburban Hanoi due to planning rumours
Land prices rise in suburban Hanoi due to planning rumours
BUSINESSicon  22/11/2021 

The Hanoi property market is once again seeing a wave of increased land prices in suburban areas, thanks to rumours of some districts being developed under the model of "city within a city".

Vietnam aims to become a cashless country
Vietnam aims to become a cashless country
BUSINESSicon  22/11/2021 

Vietnam will continue to implement new technologies and policies in its bid to become a cashless country, said banking experts and policymakers in a conference on Friday discussing the current situation of cashless technology in the country.

Hard limit for credit institutions buying corporate bonds
Hard limit for credit institutions buying corporate bonds
BUSINESSicon  22/11/2021 

Credit institutions with a bad debt ratio of more than 3 per cent are forbidden to buy corporate bonds, according to the latest announcement from the SBV.

Will work-from-home continue in post-pandemic Viet Nam?
Will work-from-home continue in post-pandemic Viet Nam?
BUSINESSicon  22/11/2021 

A mixture of online and offline, or hybrid, working is being applied in most big cities in Vietnam.

Vietnam rolls out electronic invoices
Vietnam rolls out electronic invoices
BUSINESSicon  22/11/2021 

The General Department of Taxation started to issue electronic invoices (or e-invoices) yesterday in Ha Noi, HCM City, Binh Dinh, Quang Ninh, Hai Phong and Phu Tho.

Stock market to be turned into main medium and long-term capital channel
Stock market to be turned into main medium and long-term capital channel
BUSINESSicon  22/11/2021 

After 25 years of development, the Vietnamese stock market is playing a more important role in attracting capital, supporting the commercial banking system. 

Vietnam-Australia investment, trade promotion centre inaugurated
Vietnam-Australia investment, trade promotion centre inaugurated
BUSINESSicon  22/11/2021 

Vietnamese Ambassador to Australia Nguyen Tat Thanh attended a ceremony to inaugurate the Vietnam-Australia Trade and Investment Promotion Centre on November 20.

'Revenge shopping', a chance for economic recovery
'Revenge shopping', a chance for economic recovery
FEATUREicon  22/11/2021 

After shopping centers in Ho Chi Minh City reopened, long lines of people were waiting for payment at fashion shops.

EU enterprises in Vietnam optimistic again
EU enterprises in Vietnam optimistic again
BUSINESSicon  21/11/2021 

The leadership of European Union enterprises in Vietnam has become more optimistic about Vietnam’s business environment after the social distancing has ended, and commerce and investment have begun the “new normal.”

Authorities, enterprises collaborate to respond to trade remedy lawsuits
Authorities, enterprises collaborate to respond to trade remedy lawsuits
BUSINESSicon  21/11/2021 

Vietnam is currently facing 208 trade remedy lawsuits, and this figure is expected to increase sharply in the coming time, causing the market share of Vietnamese goods to be at risk of shrinking in many export markets.

Vietnam and the ‘90% economy’
Vietnam and the ‘90% economy’
FEATUREicon  21/11/2021 

While Vietnam's economy is still struggling with difficulties, the world economy is recovering clearly, after a long period of paralysis due to the impact of the Covid-19 epidemic.

Black Friday 2021 launched in HCM City
Black Friday 2021 launched in HCM City
BUSINESSicon  20/11/2021 

The shopping festival Black Friday was kicked off on November 19 in Ho Chi Minh City.

 
 
 
Leave your comment on an article

OR QUICK LOGIN