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.