Staff assemble an auto at Ford Vietnam’s Hai Duong meeting facility. (Photograph: VNA)
Hanoi (VNS/VNA) – The Ministry of Trade and Commerce (MoIT) stated that
it’s obligatory to plot a 50% reduce on auto registration charges and prolong the
cost of the excise tax on locally-assembled and manufactured automobiles to
stimulate shopper demand and ease the burden on companies.
The above suggestion was introduced by the MoIT’s deputy minister Phan Thi Thang
in a written doc despatched to the Ministry of Finance for consideration on
April 25.
Within the doc, the MoIT stated that the chance of financial turmoil had had a
nice impression on companies, together with home vehicle assemblers and
producers. As well as, strain from tightened credit score coverage, excessive
rates of interest, and market liquidity issues even have affect on shopper
psychology as many individuals have determined to tighten their spending.
Within the first three months this 12 months, Vietnam Vehicle Producers
Affiliation (VAMA) members offered a complete of practically 77,090 items, down 31%
in comparison with the identical interval final 12 months.
By the tip of March 2023, the gross sales of domestically-assembled automobiles decreased by
34% whereas the variety of imported automobiles dropped by 4% in comparison with the identical interval
final 12 months.
After seeing a decline in gross sales of most automotive producers within the first quarter,
automotive producers and sellers have utilized preferential and promotional
insurance policies that concentrate on supporting registration charges or chopping costs for automotive
patrons to stimulate demand. Nonetheless, gross sales volumes have remained far under
expectation.
To help companies in stabilising their manufacturing and sustaining income,
the MoIT strongly believes that it’s important to chop registration charges for
domestically- manufactured and assembled automobiles till the tip of 2023.
Months in the past, VAMA and the Vietnam Affiliation of Mechanical Trade (VAMI)
requested the Authorities to halve the registration price for regionally assembled or
manufactured automobiles throughout the first half of the 12 months to spice up market demand.
The 2 associations additionally collectively requested for an extension of the deadline to pay
the excise tax. Each insurance policies needs to be imposed within the first quarter or early
second quarter 2023.
The Authorities then requested the Ministry of Finance to think about conducting a
plan for a automotive registration price reduce. Nonetheless, the Ministry of Finance rejected
the request for the 50% registration price discount for domestically
manufactured and assembled automobiles for worry of affecting native price range income
and violating worldwide commitments.
Relating to the extension of the excise tax cost, the Ministry of Finance has
deliberate to increase the deadline to pay the excise tax for
domestically-manufactured and assembled automobiles.
The Ministry of Trade and Commerce agreed with the plan and requested the Ministry
of Finance to permit an extension for excise tax cost in October 2023 as a substitute
of making use of for the payable excise tax arising within the June, July, August and September
tax interval solely./.