As recently proposed by the General Department of Customs, excise tax on cars with a cylinder capacity of 3 liters or more and less than 24 seats would be raised to 75 percent from current 60 percent as these cars are regarded as luxurious consumer goods item.
According to Industry and Trade Deputy Minister Le Duong Quang, the master plan on automobile industry development has been recently updated for submission to the Government. Under this master plan, the Industry and Trade Ministry also proposed a roadmap for excise tax reduction for cars with less than 10 seats and a cylinder capacity of up to 2 liters for the purpose of consumption stimulation. This proposal was warmly welcomed by domestic auto makers as cars of this category have been sold in the largest quantity.
Experts of the ministry also considered increasing the excise tax rate for cars with a cylinder capacity of over 2 liters, with a view to conserving energy and protecting the environment.
Excise tax on imported luxurious cars with 4-9 seats would be kept unchanged.-