Electric cars’ tax chicane

Read the original news 

Báo Đầu Tư English - 69 month(s) ago 9 readings

Electric cars’ tax chicane

State agencies will craft imported electric car taxes based on usage functions.

Xuan Cuong and Sao Viet Export Import companies’ proposed excise tax exemption for five electric cars imported into Vietnam in mid 2010 to service travel demands inside the Huu Nghi border gate economic zone in northeastern Lang Son province is getting positive feedback from state agencies.

The proposal came as in light of Decree 113/2011/ND-CP of December 8, 2011 and Decree 26/2009/ND-CP of March 16, 2009 guiding the implementation of the Law on Excise Tax cars running in sports and entertainment areas not registered to take part in public traffic activities will benefit from excise tax exemption.

Earlier, Quang Trung Mechanical Engineering Enterprise asked for tax exemption for electric cars imported to serve travel demands in factory area.

In fact, the demand for electric car imports catered for travel demands in non-public areas is increasing. Large cities like Hanoi and Nha Trang offer specialised tours using electric cars amid public traffic activities, while passengers at Hanoi’s Noi Bai international airport can take electric cars to reach bus stops less one kilometre from the airport.

A Ministry of Finance (MoF) representative said excise tax was levied on under-24 seat automobiles in public traffic, whereas specialised cars not in public traffic would not be subject to this tax.

However, since the time Excise Tax Law came into place electric cars were mainly imported into Vietnam to run in entertainment areas, disputes between custom bodies and businesses arose upon whether electric cars would be subject to excise tax exemption.

To avoid causing losses to state coffers, excise tax exemption for imported electric cars shall be considered by the MoF on a case-by-case basis.

In the two above mentioned cases, the MoF contemplated to propose the government exempt excise tax payment for electric cars imported to run inside Huu Nghi border economic zone since these cars got certification from Vietnam Register stating these cars did not enter public traffic.
Similarly, electric cars imported to serve travel demands in factory areas will also be exempted from paying the tax once getting Vietnam Register certification.

The MoF argued case-by-case consideration when it came to excise tax exemption of imported electric cars was important since in fact, there are many border economic zones like Lao Bao with even bigger local communities.

There is no comment

Please Sign up or Login to comment.

Top page