Preferential tax policies issued for development of small cars

VCN- Regarding voters’ proposals in Vinh Phuc province for issuing policies to support the automobile assembly and manufacturing industry, the Ministry of Finance said that auto components and spare parts are not subject to special consumption tax (SCT) as per the Law on Special Consumption Tax.
Supporting enterprises to overcome difficulties, are preferential taxes and fees necessary? Supporting enterprises to overcome difficulties, are preferential taxes and fees necessary?
Customs authority can accept expired C/O on force majeure clause Customs authority can accept expired C/O on force majeure clause
3456-1546-sx-o-to

Preferential tax policies for fuel-efficient, eco-friendly and small cars. Photo: H.P

Regarding the voters’ proposal to amend the regulations on the SCT taxable price for domestically manufactured cars with nine seats or fewer, the Ministry of Finance said the Prime Minister is now assigning the Ministry of Finance and the Ministry of Industry and Trade to study and submit to the Government policies and measures to support and encourage automobile production and assembly, and increase domestic added value, including solutions on SCT. The proposed measures and policies should be based on their impact assessment, experiences of other countries, consistent with international commitments and ensuring feasibility.

Regarding issuing a preferential tax policy for strategic fuel-efficient, eco-friendly and small cars, the Ministry of Finance said that Law No. 106/2016/QH13 amending and supplementing a number of articles of the Law on VAT, the Law on SCT and the Law on Tax Administration, reduces the SCT rate on cars with fewer than nine seats and a cylinder capacity of 2,000 cm3 or less, and increases the SCT rate on cars with a cylinder capacity of over 3,000 cm3.

Specifically, the SCT rate on cars with a cylinder capacity of 1,500 cm3 or less is reduced to 35% (down 10% compared to the provisions of Law No. 70/2014/QH13); 40% on the cars with a cylinder capacity from 1,500 cm3 to 3000 cm3 (down 5%).

The SCT rate on electric passenger cars with nine seats or less reduces to 15% (a reduction of 10%); 10% for cars from 10 to 16 seats (down 5%); 5% for cars from 16 to 24 seats (down 5%).

In addition, increasing the SCT rate on large-cylinder capacity vehicles to encourage the use of fuel-efficient vehicles to protect the environment. Specifically, the SCT rate on passenger cars with nine seats or fewer and a cylinder capacity exceeding 6,000 cm3 is 150%.

The SCT rate on cars running on both gasoline and electricity or bioenergy, where the proportion of gasoline does not exceed 70% of total energy used, is 70% of the rate applied to the same types of cars.

The SCT rate on cars running on bioenergy is 50% of the rate applied to the same types of cars.

The Ministry of Finance affirmed that the SCT rate has been amended and supplemented to give an advantage for the development of fuel-efficient, eco-friendly and small cars.

The Ministry of Finance will continue to record voters' recommendations to study, assess the impact, gather international experience, and report to competent authorities for consideration to amend the Law on Special Consumption Tax.

The Government Decree 57/2020/ ND-CP dated May 25, 2020 stipulates types of electric, fuel-cell, hybrid, fully biofuel, and natural gas vehicles subject to the import tax incentive program; amends the standards on minimum general output of vehicle groups and the minimum specific output of vehicle models to be consistent with the actual status of automobile manufacturing and assembling industry; amends regulations on vehicle models and procedures for the implementation of the tax incentive program to reduce administrative procedures to encourage the development of the automobile industry, the Ministry of Finance said.

Therefore, the Government issued preferential policies to develop fuel-efficient, eco-friendly and small cars as proposed.

By Hoai Anh/Ngoc Loan

Related News

Revised Law on Special Consumption Tax to reduce consumption rate of products harmful to health

Revised Law on Special Consumption Tax to reduce consumption rate of products harmful to health

VCN – According to the assessment, the increase in the Law on Special Consumption Tax not only aims to regulate the consumption of products harmful to the health and the environment, improve the health of the population and enhance labor productivity and boost sustainable development, but also raise the State revenue.
Spending over US$2 billion to import nearly 100,000 cars

Spending over US$2 billion to import nearly 100,000 cars

VCN - The number of imported CBU cars in the first half of August remained high, according to the latest preliminary statistics from the General Department of Customs.
Proposal to increase Special Consumption Tax on tobacco products

Proposal to increase Special Consumption Tax on tobacco products

VCN - At the workshop Special Consumption Tax on cigarettes held by Vietnam Tax Consulting Association and the Institute of Financial Strategy and Policy on July 16, experts and businesses clarified the goals and content of amended the special consumption tax policy on tobacco products. According to experts, there cannot be a solution that fully ensures the benefits of both consumers, the state and businesses, but it is necessary to choose the most optimal option to achieve the initially set goals.
Adding goods item subjected to special consumption tax

Adding goods item subjected to special consumption tax

VCN - According to Ministry of Finance – drafting agency, one of the purposes of amending Law on Special Consumption Tax this time is to perfect regulations on special consumption tax policy to expand the collection base and ensure transparency, ease of understanding, and ease of implementation to contribute to improving the capacity and efficiency of tax management activities. To achieve this goal, the draft Special Consumption Tax Law has many amendments on taxable objects.

Latest News

Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN – In order to achieve goal of strictly managing public debt and maintaining security and safety of the national financial system in 2025, it is necessary to ensure the borrowings and repayments of public debts is within the approved estimate; closely monitor public debt indicators to ensure that they are within the ceiling and warning thresholds approved by the National Assembly.
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

VCN - On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws. Concluding the session, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized the need for the Government to direct the drafting body and relevant agencies to collaborate closely to finalize a persuasive and widely supported report, ensuring the quality of the draft law for the National Assembly's consideration and decision.

More News

Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

VCN - According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.
Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).
U.S. Treasury continues to affirm Vietnam does not manipulate currency

U.S. Treasury continues to affirm Vietnam does not manipulate currency

VCN - In its latest report, the U.S. Department of the Treasury has positively assessed Vietnam's monetary policy, reaffirming that Vietnam does not engage in currency manipulation.
Exchange rate fluctuations bring huge profits to many banks

Exchange rate fluctuations bring huge profits to many banks

Net profits from the foreign exchange trading segment of many banks have gained positive results thanks to a strong USD/VNĐ exchange rate fluctuations this year.
A “picture” of bank profits in the first nine months of 2024

A “picture” of bank profits in the first nine months of 2024

VCN - Pre-tax profits for banks during the first nine months of 2024 remained positive, exceeding 200 trillion VND, solidifying the sector's position as a market leader.
Many challenges in restructuring public finance

Many challenges in restructuring public finance

VCN - Restructuring public finance is an important step to improve state financial management, ensure resources are allocated reasonably and effectively, contributing to the country's sustainable development. In addition to the achieved results, the process of accelerating public finance restructuring also faces many pressures.
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

VCN - E-commerce platforms that declare and pay taxes on behalf of traders not only help to reduce the number of tax declaration points but also reduce the cost of compliance with administrative procedures for the whole society because only one point as the e-commerce trading platform implements tax deduction, payment and declaration on behalf of tens, hundreds of thousands of individuals and business households on the platform.
Disbursement of public investment must be accelerated: Deputy PM

Disbursement of public investment must be accelerated: Deputy PM

Deputy Prime Minister Ho Duc Phoc has called on ministries, agencies, and localities to accelerate the disbursement of public investment from now until the year-end and further tighten investment management.
Read More

Your care

Latest Most read
Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN - According to the plan for borrowing and repaying public debt and foreign debt of the country in 2025, the total borrowing demand of the Government in the year is expected to be at VND 815,238 billion, an increase of 20.6% compared to the Government'
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
Mobile Version