Special consumption tax adjustment on cars takes effect

by VTV402 July 2016 Last updated at 13:18 PM

VTV.vn - Starting on Friday July 1st, a number of amended articles of the Law on Value Added Tax, Law on Special consumption tax and Tax Administration Law officially took effect.

The tax rate for passenger cars with less than 10 seats with a cylinder capacity of 1,500 cubic metres or less has been reduced from 45% to 40% and then will be reduced further to 35 % on January 1st, 2018. Meanwhile, cars with a cylinder capacity of 1,500 to 2,000 cubic metres and 2,000 cubic metre to 2,500 cubic metres will remain at 50% as before. The special consumption tax rates on cars with cylinder capacity of 2,500 cubic metres to 3,000 cubic metres has increased from 50% to 55%. The tariff adjustment ensures uniformity with the development strategy of Vietnam's car industry, and is intended to encourage the production and sale of small and fuel efficient cars.

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