As of August 15, passenger cars of less than 10 seats, with less than 1.0 liter cylindrical capacity, will be levied a fixed tax of US$3,500 while those with cylindrical capacities ranging from 1.0 to 1.5 liters, will be subject to a fixed tax of $8,000.
The 10-15 seat passenger cars with cylindrical capacities of 2.0 liters or less will be subject to a fixed tax of $9,500. A car with a cylindrical capacity of between 2.0 liters to 3.0 liters will be subject to a fixed tax of $13,000 while a car with a cylindrical capacity larger than 3.0 liters, will be levied at $17,000.
The Prime Minister has allowed the Ministry of Finance to increase or reduce the number of imported vehicles within a 20 per cent range and within World Trade Organization regulations.
Both 6-9 seat sedan and multi-purpose vehicles are forecast to be heavily affected by new fixed tax rates, which are likely to raise domestic prices, especially those of luxury vehicles.
The PM has additionally permitted the Ministry of Finance to keep a tight grip on car imports with the aim of curbing trade fraud, the number of cars on the road and import values.
The new decision 36/2011/QD-TTG will replace existing regulations based on the promulgation of fixed taxes on used cars enacted in March 28, 2006.
(Source: VNS)
