Special consumption tax on automobiles to be raised
Source: 06-MAY-2008 Intellasia | VnExpress
May 6, 2008 - 7:00:00 AM The Ministry of Finance was licensed to increase the special consumption tax on automobiles from the current level of 50%. By the end of April, the ministry asked the government's approval on raising special consumption tax on some kinds of cars that account for a high ratio in automobile imports at the moment.

According to the ministry, although the import tariff on automobiles was increased two times from 60% to 70% and now 83% in the short time, the volume of cars imported into Vietnam still has been soaring leading the heavier tense in trade deficit. Thus, the adjustment of special consumption tax is very significant and necessary to monitor the market.

The particular tax adjustment is being built to seek relevant agencies' approval.

Special consumption tax is applied on three good items including car, tobacco and beer alcohol. On January 1, 2007, Law on Special Consumption Tax was modified in line with applying a common tax on domestically and internationally produced goods items, in which the special consumption tax on draught beer and fresh beer was defined at 30%.

As for domestically made cars, the special consumption tax is 50% on five seat cars, 30% on 6-15 seat cards and 15% on 16-24 seat cars.