Revising SCT on automobiles must ensure harmony of benefits

VCN - At the Workshop "Draft regulations on revising special consumption tax (SCT) on automobiles: Impacts and Recommendations" organized by the Central Institute for Economic Management (CIEM) on August 1, many multi-dimensional comments of experts and businesses have mentioned the impacts of the SCT policy on automobile products, especially on electric cars.
Ministry of Finance suggests not implement 50% reduction in car registration fee Ministry of Finance suggests not implement 50% reduction in car registration fee
Reporting to the National Assembly for considering VAT reduction in the second half of 2024 Reporting to the National Assembly for considering VAT reduction in the second half of 2024
Industrial production has not yet been able to fully recover as before the Covid-19 pandemic Industrial production has not yet been able to fully recover as before the Covid-19 pandemic
https://haiquanonline.com.vn/sua-thue-tieu-thu-dac-biet-doi-voi-o-to-can-dam-bao-hai-hoa-loi-ich-188503.html

The Ministry of Finance is presiding over the development of a draft Law on SCT (revised) with amendments to a number of important contents. In particular, the SCT Law aims to orient the economical consumption of fossil fuels and encourage the use of environmentally friendly motor vehicles; catch up with development trends; and ensure consistency with the relevant legal system.

Emphasizing the importance of this Tax Law because the SCT directly impacts consumption choices, affecting production and business activities of automobile industry enterprises, Nguyen Minh Thao, head of the Business Environment and Competitiveness Research Department under CIEM said that automobiles are one of the products regulated by the SCT Law.

The draft Law submitted by the Ministry of Finance contains amendments related to this product. These amendments will certainly have a major impact on businesses in the automobile industry as well as businesses in the production, business chain, and providing products and services to the industry.

At the workshop, comments focused on identifying and discussing impacts of the draft regulations on revising SCT on automobiles, including gasoline-powered cars combined with electric energy and cars and double cabin pick-up trucks. At the same time, there are many opinions about the problems and difficulties of automobile industry enterprises.

According to a representative of KPMG Tax and Consulting Co., Ltd., the automobile industry in Vietnam is in an important transition period. In the world, the trend of electrification of the automobile industry is becoming increasingly popular and Vietnam is no exception to this trend.

Although the growth potential for environmentally friendly automobiles in Vietnam is reinforced by commitments in international agreements on environmental protection and climate change prevention, the transition process in the automobile industry is still facing many difficulties, including the economic decline after the Covid-19 pandemic, geopolitical tensions, inconsistent development of infrastructure as well as power generation sources and potential competition from foreign low-cost electric vehicle manufacturers.

Accordingly, the representative of this company proposed to SCT incentives for gasoline –powered vehicles combined with electric energy (Hybrid vehicles). Specifically, for self-charging hybrid electric vehicles (HEV), the proposed tax rate is 70% of the tax rate applicable to gasoline and diesel- powered cars of the same type (currently 100%).

For plug-in hybrid electric vehicles (PHEVs), the proposed preferential tax rate is 50% of the tax rate applicable to gasoline and diesel- powered cars of the same type (currently 100%).

Regarding the impact of this proposal on the state budget, KPGM representative said that according to the basic plan, state budget revenue from 2026 to 2030 is about nearly VND782 trillion. If incentives are applied, state budget revenue in this period will reduce nearly VND23.55 trillion to nearly VND758.387 trillion.

In addition, the Vietnam Automobile Manufacturers Association and KPGM also proposed to maintain the current SCT rate on double cabin cargo pick-up vehicles (15%, 20% and 25% depending on cylinder capacity).

According to Ms. Tran Hong Nguyen, Deputy Head of the National Assembly's Law Committee, the promulgation of the SCT Law (amended) is necessary, but due to the impact of the Covid-19 pandemic and developments in the economic situation in the world, the promulgation of this law needs to pay attention to harmony in policies, a suitable roadmap for businesses to develop, people to have jobs, ensure budget revenue.

Some experts believe that, along with the goal of encouraging production and supporting consumers, management policies also have long-term goals such as urban development, environmental protection, infrastructure development, and meeting international commitments. Therefore, these policies must also be synchronized with SCT policies to ensure both short-term and long-term goals, and have the impact sharing of all stakeholders.

Ms. Nguyen Thi Cuc, President of the Vietnam Tax Consulting Association also said that it is necessary to ensure harmony of benefits of related parties as well as ensure harmony of goals in developing SCT policy. If the policy is appropriate and feasible, it will help businesses develop and help the state collect more taxes.

By Hoai Anh/ Huyen Trang

Related News

Budget revenue is about to be completed for the whole year estimate

Budget revenue is about to be completed for the whole year estimate

VCN - After 10 months of 2024, the budget collection progress has almost completed the assigned estimate for the whole year. From now until the end of the year, the entire Finance sector is striving to achieve the revenue exceeding the set target.
Policy adaptation and acceleration of digital transformation in tax and customs management

Policy adaptation and acceleration of digital transformation in tax and customs management

VCN - In order to contribute to economic growth, tax, customs and logistics management policies need to ensure high adaptability, stability and predictability so that they require little amendment or supplementation.
State revenue collection poised to surpass annual target

State revenue collection poised to surpass annual target

VCN - With ten months of 2024 behind us, Vietnam’s state budget revenue is on track to exceed the year’s target. The Ministry of Finance is pushing hard to achieve results that go beyond initial projections as the year draws to a close.
Propose many solutions to shorten tax refund time

Propose many solutions to shorten tax refund time

VCN - Fully defining the duties and responsibilities of tax officials and having a mechanism to protect tax officials in tax refunds are breakthrough solutions being proposed to remove bottlenecks and barriers, speeding up the tax refund process in the coming time.

Latest News

Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

VCN - Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

VCN - In order to avoid the situation of arriving at the airport or border gate and only finding out that you owe taxes and being temporarily suspended from leaving the country by the Tax Authority, the Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

VCN - In June 2005, the World Customs Organization (WCO) developed and adopted the SAFE Framework of Standards to Secure and Facilitate Global Trade. The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs. This approach introduces a comprehensive method for cross-border goods management and promotes closer cooperation between Customs, businesses, and stakeholders. The Customs News presents a two-part series on implementing the SAFE Framework in Vietnam.
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

VCN - In the draft revised Law on Tax Administration, the Ministry of Finance proposed amending regulations on measures to enforce administrative decisions on tax administration to remove obstacles in policy mechanism and improve the effectiveness of tax administration.

More News

Many shortcomings in process and manual book on handling administrative violations

Many shortcomings in process and manual book on handling administrative violations

VCN - Legal policies on handling administrative violations have effectively supported the technical work of the Customs sector. However, some legal bases and regulations have been amended, replaced, and supplemented, which have limited the efficiency of handling administrative violations of the customs sector.
Implementing the SAFE Framework in Vietnam: Lessons from practice

Implementing the SAFE Framework in Vietnam: Lessons from practice

VCN - The Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) is a strategic international instrument introduced by the World Customs Organization (WCO) to enhance security and trade facilitation in global supply chains. It contributes significantly to the economic development of the 21st century.
Implementing the SAFE Framework in Vietnam: Solutions and Recommendations

Implementing the SAFE Framework in Vietnam: Solutions and Recommendations

VCN - Recognizing the significance, impact, and benefits of the SAFE Framework in customs modernization and reform, Vietnam Customs is advancing the implementation of SAFE. This involves both capacity building and phased deployment aligned with Vietnam Customs’ development strategy and practical needs.
Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

VCN - The Ministry of Finance said that the abolition of regulations on tax exemption for imported goods valued at less than VND1 million must comply with international practices in the context of the growing trend of cross-border e-commerce activities.
Implement regulations on special preferential import tariffs under VIFTA

Implement regulations on special preferential import tariffs under VIFTA

VCN - The General Department of Vietnam Customs (GDVC) requests provincial and municipal customs departments to implement Vietnam's special preferential import tariffs under the Free Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the State of Israel for the period 2024-2027 (referred to as the VIFTA) from October 15, 2024.
Perfecting tax policy for goods traded via e-commerce

Perfecting tax policy for goods traded via e-commerce

VCN - In order to ensure the goal of developing e-commerce activities without causing loss of state budget revenue, the Customs authority is actively coordinating with policy advisory units of the Ministry of Finance to research and review regulations on tax exemption for import and export goods transacted via e-commerce.
Are belongings of foreigners on business trip to Vietnam exempt from tax?

Are belongings of foreigners on business trip to Vietnam exempt from tax?

VCN - That is the question of Nhat Viet Relocation Company Limited, which has just been answered by the Customs Department and given specific instructions on providing a confirmation of residence of foreigners on business trip to Vietnam to follow tax exemption procedures for movable assets.
Amending regulations on enforcement measures in tax administration

Amending regulations on enforcement measures in tax administration

VCN - In draft of 1 law amending 7 laws in the financial sector, the Ministry of Finance proposed to amend the regulations on enforcement measures in tax administration in the Law on Tax Administration.
Customs procedures for import and export goods during system disruptions

Customs procedures for import and export goods during system disruptions

VCN - When the electronic customs data processing system experiences a disruption, customs procedures for export and import goods, goods under customs supervision, and goods sent via express delivery will follow a separate set of procedures.
Read More

Your care

Latest Most read
Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

VCN - In the draft revised Law on Tax Administration, the Ministry of Finance proposed amending regulations on measures to enforce administrative decisions on tax administration to remove obstacles in policy mechanism and improve the effectiveness of tax
Many shortcomings in process and manual book on handling administrative violations

Many shortcomings in process and manual book on handling administrative violations

VCN - Legal policies on handling administrative violations have effectively supported the technical work of the Customs sector. However, some legal bases and regulations have been amended, replaced, and supplemented, which have limited the efficiency of h
Mobile Version