Vietnam raises import tax on automobiles and auto parts
But according to the dealers in Vietnam, it’s not expected to have any impact on sales:
Deputy Finance Minister Do Hoang Anh Tuan, in a decision Thursday (17 Apr), increased tax on wholly assembled cars to 83% from current 70%, said a ministry official who identified himself only as Tu.
Just last month, the government raised the import tax on imported cars from 60% and Prime Minister was urging for more tax hikes to cut surging trade deficit.
The government also raised the tax on imported parts by 3%-5% to 25%, the official said. The new tax rates take effect on Tuesday (22 Apr).
“This new measure aims to cut the soaring trade deficit as instructed by the prime minister,” he said.
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“The new tax rates are unlikely to affect our sales,” said Nguyen Hoai Anh, sales manager of a Toyota dealer in Hanoi.“At the moment, demands for our cars exceed our production capability, our customers have to wait three to five months to have their cars delivered,” he said adding Toyota Vietnam is unlikely to raise prices considering the small increase in import tax on car parts.
Vietnam forecasts slower export and import growth in 2009 | Third Party Logistics News - 3PLwire on Tue, 18th Nov 2008 6:07 pm
[...] such as cars and mobile phones, which are flooding the country as the economy booms. Despite consistently raising the import tax on automobiles and auto parts, sales continue to rise and imports along with [...]