Why Are Car Taxes So High in Vietnam?

“My friend, I’ve been saving up for years to buy a Dongfeng truck for my business, but I hear the taxes are very high, aren’t they?” My friend Minh, the owner of a grocery store on Hang Buom Street, asked while sipping his hot tea. Indeed, Minh’s question is a common concern for many Vietnamese people considering buying a car, especially a truck. So, why are car taxes in Vietnam so high? Let’s explore this with XE TẢI HÀ NỘI!

Why Are Car Taxes High in Vietnam?

The fact that car taxes in Vietnam are higher than in many other countries stems from various reasons, both subjective and objective.

1. Protecting Domestic Production and Controlling Inflation

Vietnam is still a developing country with a nascent domestic automobile industry. High tax policies are considered a “protective wall” for local businesses, encouraging people to use domestically produced vehicles, thereby promoting the development of the automotive industry.

Besides, controlling the number of cars on the road is also a way to control inflation, reduce traffic congestion, and protect the environment.

Economist Nguyen Van An, in his book “Vietnam’s Automobile Market: Current Situation and Solutions,” stated: “Applying high taxes on imported cars is a necessary temporary measure in the current period; however, in the long run, more appropriate policies are needed to facilitate the sustainable development of the domestic automobile industry.”

2. Source of State Budget Revenue

Taxes from automobiles are a significant source of state budget revenue. This revenue is used to invest in transportation infrastructure, education, healthcare, and other sectors, contributing to socio-economic development.

3. Types of Taxes and Fees Applied to Cars

When buying a car, people have to bear many different types of taxes and fees, such as:

• Import Tax: Applied to completely built-up imported vehicles (CBU).
• Special Consumption Tax: Applied to all types of motor vehicles.
• Value Added Tax (VAT): Applied to all goods and services, including cars.
• Registration Fee: Applied when registering a new car.
• Road Maintenance Fee: Collected annually when using a car.

The overlapping of these taxes and fees pushes car prices in Vietnam up, making it difficult for people to access means of transportation.

Truck Price List Reference at XE TẢI HÀ NỘI

Note: Prices may vary depending on the time and promotion programs.

Frequently Asked Questions about Car Taxes

1. When Will Car Taxes Decrease?

This is a question that many people are interested in. Currently, the government has no specific plan to reduce car taxes. However, with the signing of free trade agreements, import taxes on cars from some countries will gradually decrease in the coming time.

2. What to Consider When Buying a Truck on Installment?

When buying a truck on installment, you need to pay attention to the loan interest rate, loan term, loan procedures, and terms in the loan contract to avoid disputes later.

3. Do I Need to Pay Registration Fee When Buying a Used Truck?

When buying a used truck, you still have to pay the registration fee; however, the tax rate will be lower than that of a new car.

Where to Buy Reputable and Quality Trucks?

If you are looking for a reputable and quality truck dealer in Hanoi, come to XE TẢI HÀ NỘI. We offer a wide range of trucks from famous brands such as Dongfeng, Hyundai, Hino,… with the most competitive prices in the market.

Contact us today for the best advice and support!

XE TẢI HÀ NỘI – The Trusted Address for Everyone!

Address: No. 1 Nguyen Van Linh, Long Bien District, Hanoi.

Hotline: 0987.654.321

Similar Truck Models

In addition to the truck models mentioned above, XE TẢI HÀ NỘI also offers similar products such as:

• Isuzu Trucks
• Fuso Trucks
• Thaco Towner Trucks

Please visit our website https://xetaihanoi.edu.vn/ for more detailed information about our products.

Conclusion

High car taxes are a complex issue with many causes and consequences. Hopefully, this article has helped you better understand this issue.

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