Thursday, August 22 2019

VietNamNews

MoF proposes to increase import tax on heavy trucks

Update: August, 13/2019 - 08:17

 

The current zero tax rate levied on imported trucks of more than 45 tonnes does not encourage local producers. — Photo ndh.vn

HÀ NỘI — The Ministry of Finance has proposed to increase import tax on complete built-up units (CBUs) of trucks weighing more than 45 tonnes from the current zero to 10 per cent. This tax level is equal to commitments under the World Trade Organisation (WTO).

The proposal was listed in the draft circular on revising import tax on trucks and spare parts.

The ministry said the more than 45-tonne trucks have simple functions and configurations that most domestic enterprises can manufacture and assemble. The zero tax rate does not encourage local producers to make this type of vehicle as well as hinders them from competing with imported ones.

Meanwhile, the demand in Việt Nam for the truck was 500 to 700 vehicles a year, mainly from brands of HOWO, BELAZ and VOLVO from China, Sweden and Eastern European countries. Việt Nam now has only assembly companies of the truck including THACO, HINO and TMT with capacity of some 2,000 trucks a year.

Last year, the country imported 117 trucks of more than 45 tonnes worth US$19 million. In the first four months of the year, the country imported 254 truck worth $43.8 million, double that of the whole of last year.

The ministry said the tax adjustment would contribute $1.9 million to the State budget. — VNS

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