Impose special consumption tax on pick-up car

VCN- The General Department of Vietnam Customs (GDVC) has asked local customs departments to impose special consumption tax on pick-up cars.
Experience in levying  special consumption tax on sweetened beverages in many countries Experience in levying special consumption tax on sweetened beverages in many countries
Ho Chi Minh City proposes to raise Special Consumption Tax for alcohol and beer Ho Chi Minh City proposes to raise Special Consumption Tax for alcohol and beer
Guiding the declaration of special consumption tax Guiding the declaration of special consumption tax
Impose special consumption tax on pick-up car
Customs officers of Lang Son Customs Department inspect imported trucks. H.N

The GDVC cited Point d, Clause 1, and Article 2 of the Law on Special Consumption Tax No.27/2008 of the National Assembly as saying under-24 seat cars, including cars for both passenger and cargo transportation with two or more rows of seats and fixed partitions between passenger holds and cargo holds.

Clause 4 of Section I of Special excise tax schedule of Clause 2 Article 2 of the Law No. 106/2016/QH13 stipulates passenger cars with nine seats or less, except for those specified in Points 4dd, 4e and 4g of this schedule. Pick-up car, except for those specified in Points 4, 4e and 4g of this schedule with cylinder capacity of 2,500 cm3 or less, those with a cylinder capacity of more than 2,500 cm3 to 3,000 cm3, and those with a cylinder capacity in excess of 3,000 cm3 will be applied a tax rate of 15%, 20% and 25%, respectively.

Clause 1, Article 5 of Decree 108/2015 of the Government dated October 28, 2015 provides motor vehicles designed to transport both passengers and cargo mentioned in Point 4d and 4g of the excise tax schedule are those that have at least two aisles and a partition that separates the passenger compartment and cargo compartment per national standards promulgated by the Ministry of Science and Technology.

The Law on Special Consumption Tax does not provide a term of “compact car” for vehicles subject to Special Consumption Tax or those not subject to Special Consumption Tax.

If enterprises import pick-up car under provisions in the Law No. 106/2016/QH13, meeting standards issued by the Ministry of Science and Technology and the Special Consumption Tax rate specified at Point 4d, Article 7 of the Law on Special Consumption Tax will be applied.

The GDVC cites Circular 65/2017/TT-BTC and refers to the HS 2017 of the World Customs Organization saying pick-up cars for transport of people is under heading 87.03 and pick-up cars for transport of goods under heading 87.04.

As for specialised commodity standards, Decision No. 2431 dated November 8, 2010 of the Ministry of Science and Technology stipulates that pick-up cars for the transport of people described in point 3.1.1 have least one feature different from cargo pick-up cars described in point 3.2.7 (applicable to pick-up cars with single cabin) and point 3.2.8 (applicable to pick-up cars with double cabins), which is a ratio "Total weight of the number of people allowed to carry (Mng)" and "total weight of goods allowed to carry (Mh)" < 80% (Mng=65kg/person x number of seats).

Compared with regulations, the Law on Special Consumption Tax and the decree guiding not to use the term "compact cars" as goods subject to special consumption tax. If firms import pick-up cars according to the provisions of the Law on Special Consumption Tax, amended and supplemented in Law No. 106/2016/QH13, Point 4d, Article 7 of the Law on Special Consumption Tax will be applied.

Official Dispatch No. 6741 of General Department of Customs dated November 16, 2018 guides classification and HS determination for “Ford Ranger Raptor” car but does not guide SCT on this kind of car.

The GDVC said, imposing special Consumption Tax on pick-up cars under the tax rate of pick-up cars for transport of people according to Official Dispatch No. 6741/TCHQ-TXNK by local customs departments is unreasonable.

By Nu Bui/Ngoc Loan

Related News

Businesses are shifting to recruiting highly skilled workers

Businesses are shifting to recruiting highly skilled workers

VCN - Meeting the high demands of the market, as well as the requirements for digital transformation, many businesses have been in need of recruiting highly skilled workers.
Goods cleared through Ho Chi Minh City Customs rise nearly 25%

Goods cleared through Ho Chi Minh City Customs rise nearly 25%

VCN - In the first month of 2024, the value of import and export goods went through customs procedures through the Ho Chi Minh City Customs Department rose nearly 25% year-on-year.
Export turnover of goods in January 2024 reaches US$ 33.57 billion

Export turnover of goods in January 2024 reaches US$ 33.57 billion

VCN – The export turnover in January 2024 is estimated to increase by 6.7% to US$ 33.57 billion month-on-month. This is also the highest export turnover since September 2022.
Proposing to have information sharing mechanism in price management

Proposing to have information sharing mechanism in price management

VCN - In the draft Decree detailing and implementing measures for a number of articles of the 2023 Price Law, the Ministry of Finance has proposed many specific tasks for price stabilization as well as market price analysis and forecasting.

Latest News

Removing difficulties in tax exemption and refund policies for export processing enterprises

Removing difficulties in tax exemption and refund policies for export processing enterprises

VCN - The Customs agency has received many proposals from businesses about answering and guiding policies on tax exemption, import tax and VAT refund for export processing enterprises. The General Department of Customs has responded and provided instructions for each specific case.
Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

VCN - Scrap is a sensitive item with many potential risks of environmental pollution, directly affecting human health and the ecosystem. Therefore, strict management measures are needed to avoid the risk that Vietnam become a scrap gathering country in the world.
New law expected to boost financial leasing

New law expected to boost financial leasing

The law, which will take effect from July 1 this year, allows financial leasing companies to establish subsidiaries to handle and exploit bad debt assets. It also states that small financial leasing deals with value under VNĐ100 million do not need to control the purpose of capital use.
5% VAT on fertilisers to create fairer market: domestic producers

5% VAT on fertilisers to create fairer market: domestic producers

The absence of VAT on fertilisers has prevented domestic producers from declaring and deducting input VAT, which leads to higher cost of domestically produced fertilisers, by an estimated 5-8 per cent, and makes them vulnerable in competition from imported fertilisers.

More News

Why not reduce export tax on fertilizer products to 0%?

Why not reduce export tax on fertilizer products to 0%?

VCN - Clarifying a number of contents related to the draft Decree amending and supplementing a number of articles of Decree No. 26/2023/ND-CP on Preferential Export Tariffs, Import Tariffs, List of Goods and Rates Absolute tax, mixed tax, import tax outside the tariff quota regarding the export tax rate for some types of fertilizers, the Ministry of Finance has clarified the reason why it does not adjust the export tax rate for this product.
Ho Chi Minh City Customs proposed to reduce VAT

Ho Chi Minh City Customs proposed to reduce VAT

VCN - Ho Chi Minh City Customs Department proposed that the Ministry of Finance advise the Government to apply a reduction in the Value Added Tax (VAT) rate of 2% for all groups of goods and services which currently subject to the 10% VAT rate, uniform at the stages of import, production and consumption.
Limiting the "power" of major shareholders under the Law on Credit Institutions (amended)

Limiting the "power" of major shareholders under the Law on Credit Institutions (amended)

VCN - The Law on Credit Institutions (amended) has tightened the maximum ownership ratio and lending ratio to limit the influence of shareholder groups as well as minimize risks from credit concentration for banks.
VCCI proposes zero tax rate to be maintained for exported services

VCCI proposes zero tax rate to be maintained for exported services

The Vietnam Chamber of Commerce and Industry (VCCI) has proposed a zero-value added tax (VAT) rate to be maintained for exported services, over worries that tax hikes would undermine the competitiveness of Vietnamese providers against foreign rivals.
Ministry of Finance anwser voters about on-spot imports and exports

Ministry of Finance anwser voters about on-spot imports and exports

VCN - The Ministry of Finance has been collecting comments from related ministries and branches to aggregate and submit options to the government for abolishing Article 35 of Decree 08/2015/NĐ-CP. It aims to ensure the consistency and synchronism between the legal system and the reality.
Customs instructs C/O submission for imported cane sugar products

Customs instructs C/O submission for imported cane sugar products

VCN – Sugar products are allowed to apply tariff quotas when joining the WTO. The sugar products imported from ASEAN member states under Circular No. 23/2019/TT-BCT dated November 13, 2019, are required the Certificate of Origin form D.
SBV drafts regulations on a testing mechanism for Fintech

SBV drafts regulations on a testing mechanism for Fintech

VCN - To prevent risks and promote new products, services, and business models, the State Bank of Vietnam (SBV) has developed a draft Government decree stipulating a controlled testing mechanism in the banking sector.
Finance sector abolishes 40 administrative procedures

Finance sector abolishes 40 administrative procedures

VCN - The Ministry of Finance said that in the first two months of 2024, the Ministry of Finance issued four decisions announcing amendments and supplements and replacement of 21 administrative procedures; abolishing of 40 administrative procedures and issuing 10 new administrative procedures in the fields of tax and insurance.
Automate the registration fee management process

Automate the registration fee management process

VCN - The General Department of Taxation is reviewing and completing the Draft of the procedure to replace the Registration Fee Management Process for other assets subject to registration fee (except houses and land).
Read More

Your care

Latest Most read
Removing difficulties in tax exemption and refund policies for export processing enterprises

Removing difficulties in tax exemption and refund policies for export processing enterprises

VCN - The Customs agency has received many proposals from businesses about answering and guiding policies on tax exemption, import tax and VAT refund for export processing enterprises. The General Department of Customs has responded and provided instructi
Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

VCN - Scrap is a sensitive item with many potential risks of environmental pollution, directly affecting human health and the ecosystem. Therefore, strict management measures are needed to avoid the risk that Vietnam become a scrap gathering country in th
New law expected to boost financial leasing

New law expected to boost financial leasing

The law, which will take effect from July 1 this year, allows financial leasing companies to establish subsidiaries to handle and exploit bad debt assets. It also states that small financial leasing deals with value under VNĐ100 million do not need to control the purpose of capital use.
5% VAT on fertilisers to create fairer market: domestic producers

5% VAT on fertilisers to create fairer market: domestic producers

The absence of VAT on fertilisers has prevented domestic producers from declaring and deducting input VAT, which leads to higher cost of domestically produced fertilisers, by an estimated 5-8 per cent, and makes them vulnerable in competition from imported fertilisers.
Why not reduce export tax on fertilizer products to 0%?

Why not reduce export tax on fertilizer products to 0%?

VCN - Carry out assigned tasks in Resolution No. 58/NQ-CP dated April 21, 2023, to promptly meet practical requirements, remove difficulties for production and business, and contribute to promoting the innovation of administrative procedures and preventin
Mobile Version