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Submitted by ctv_en_3 on Mon, 03/27/2006 - 18:20
The tax on imported used cars will range between US$3,000 and US$25,000 each depending on the number of seats and cylinder capacity. The calculation of fixed tax rates will be based on the average price of each type of car under normal trade conditions. Then, a tax rate of 150 percent will be applied.

The Ministry of Finance recently submitted a draft decision on imported used cars to the Government. The tariffs for the cars attract a great deal of attention from enterprises and consumers. 

Deputy Minister of Finance Truong Chi Trung said imported used cars will be subject to fixed tax rates. The plan to impose fixed tax rates was submitted to the Government after consulting with relevant ministries and agencies. The import tax will range between US$3,000 and US$25,000 each depending on the number of seats and cylinder capacity. The calculation of fixed tax rates will be based on the average price of each type of car under normal trade conditions. Then, a tax rate of 150 percent will be applied.

Mr Trung said the application of fixed tax rates on imported used cars will help solve issues relating to importing high-quality cars, protecting the interests of consumers, and preventing trade fraud.

According to experiences from many countries in the world, fixed tax rates are applied to goods, which have fluctuating prices such as used automobiles. If an enterprise buys a batch of used cars, it cannot know how much it will have to pay.

Mr Trung said domestically made cars and imported new cars are hit with high tariffs, thus used cars will be regulated by similar policies. New cars must be imported at a higher price than domestically manufactured ones. Similarly, imported used cars must be priced in the same way to protect the domestic used car market. Previously, the Government banned importing used cars and while it now permits the activity, it will not allow a massive flood of used products at low prices into Vietnam without proper calculation. The Government will levy appropriate tariffs favourable for consumers, while keeping domestic carmakers’ interests unaffected. However, customers should not expect that it would be easy to buy imported used cars as not all people are used to buying a high-quality car at a reasonable price.


In countering trade fraud, Mr Trung said the Ministry of Finance and relevant ministries and departments agreed that imported used cars will be introduced to the market gradually. In 2006, used cars will be imported under strict monitoring at international ports with good warehouses. The Ministry of Transport and Ministry of Public Security will issue an inter-circular stipulating what is a used car in order to avoid venders fraudulently claiming new car as a used vehicle.

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