Vietnam to reduce automobile import taxes
Vietnam will reportedly lower imports tariffs on automobiles be a considerable amount between 2006 and 2009.
Vietnam currently imposes high import tariffs on automobiles. The tariffs on tourist cars and trucks between 5-10 tons stand at 100 and 60% respectively.
The country plans to lower the tariff on automobiles with 10-30 seats to 20% in 2007 and 0-5% in 2008. Auto imports on 2-10 seats will see a tariff reduction to 20% in 2008 and 5% in 2009. Taxes on trucks weighing less than five tons will also be reduced from 100% to 20% in 2006, with a further cut to 5% in 2007.
Domestic demand for automobiles is expected to increase in the coming years due to Vietnam's booming population. The country's strong economic growth also contributes to the rise in domestic demand.
Eleven automobile joint ventures in Vietnam reported total sales of 40'138 units in 2004, down 6% over 2003. Companies asked the Vietnamese government to reduce special
consumption taxes on locally-assembled automobiles. The companies also requested that the government expand the
production of vehicle accessories and spare parts.
Vietnam imported 22'000 automobiles worth $324 million in 2004, said Vietnam's General Statistics Office.