When Will Vietnam Eliminate Car Import Taxes?

Everyone dreams of owning a car at an affordable price. However, car prices in Vietnam remain high compared to the average income, partly due to tax policies. So, when will Vietnam abolish car import taxes? This article will provide a detailed answer!

Car Import Taxes – A Difficult Equation?

Currently, import taxes on completely built-up cars are applied at different rates depending on the origin and engine displacement. For example, cars with fewer than 9 seats imported from ASEAN countries enjoy a 0% tax rate.

However, completely eliminating car import taxes is a different story. According to expert Le Van Minh, author of “Vietnam’s Automobile Market – Potential & Challenges,” the removal of import taxes needs careful consideration to avoid negatively impacting the nascent domestic auto industry.

Advantages & Disadvantages of Eliminating Car Import Taxes

ADVANTAGES

• Reduced car prices: Consumers directly benefit from lower car prices, stimulating purchasing demand and boosting the auto market.
• Diversified choices: Consumers have access to a wider variety of car models from renowned global brands.

DISADVANTAGES

• Competition with the domestic auto industry: Domestic car manufacturers and assemblers may face difficulties competing with cheaper imported cars.
• Impact on state budget revenue: Car import taxes are a significant source of revenue for the state budget.

Car import tax chart

Predictions for the Future of Car Import Taxes

There is no official information on when Vietnam will eliminate car import taxes. However, according to Nguyen Van An, an economist at the Institute of Economic Research – “Vietnam is integrating into the international economy, and gradually reducing and eventually eliminating car import taxes is an inevitable trend. However, this process needs to be carried out cautiously, with a specific roadmap to ensure the harmonious benefits of consumers, businesses, and the State.”

Frequently Asked Questions about Car Import Taxes

When will car prices decrease?

Car price reductions depend on various factors such as tax policies, market fluctuations, and exchange rates.

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Which truck suits my business needs?

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Conclusion

The elimination of car import taxes remains a controversial issue. However, consumers can still hope for a future with quality cars at more affordable prices. Follow XE TẢI HÀ NỘI for the latest updates on the auto market!