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Official Gazette

Saturday, August 24, 2019

MoF proposes to increase import tax on heavy trucks

Updated: 09:03’ - 13/08/2019
The Ministry of Finance has proposed to increase import tax on complete built-up units (CBUs) of trucks weighing more than 45 tons from the current zero to 10 percent. This tax level is equal to commitments under the World Trade Organization (WTO).

The current zero tax rate levied on imported trucks of more than 45 tons does not encourage local producers__Photo: ndh.vn

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

The ministry said the more than 45-ton 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 Vietnam 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. Vietnam 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 tons worth USD 19 million. In the first four months of the year, the country imported 254 trucks worth USD 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/VLLF)

 

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