Gov't extends excise tax payment deadline for local cars
VGP - The Government promulgated Decree No. 32/2022/ND-CP, dated May 21, 2022 to extend deadline for payment of excise tax on domestically produced and assembled cars.
Accordingly, payable amounts for June, July, August and September would be extended to November 20.
This is the third round of extension since 2020 with an aim to provide urgent support for the domestic car industry to overcome difficulties caused by the COVID-19 pandemic.
The decree takes effect from the date of issuance until late December 31, 2022. Once the extended deadline is expired, excise tax payment on domestic cars shall be reverted to normal.
The latest round of extension was put forward by the Ministry of Finance last April as the fourth wave of the COVID-19 resurgence slowed the recovery of the local car market.
To comply with social distancing measures, many auto dealers temporarily suspended their businesses, and most of them fell into a “frozen state”, particularly from June to September 2021, said the ministry.
It is reported that automobile manufacturers had to face chip and component shortages due to the disruption of the global supply chain.
The pandemic has left an unforgettable mark on the local automobile market as sale volume plummeted.
The locally-made and assembled auto industry has suffered impact from the pandemic that requires support from the Government.
This tax cut is expected to reduce budget revenue by US$87 million –130 million.
The Ministry of Industry and Trade proposed an exemption of special consumption tax on automobile components for domestically-produced cars, which would help lower costs, and selling prices and increase competitiveness in the market./.