In an effort to alleviate congestion on the country’s roads Vietnam’s Ministry of Finance has proposed levying higher taxes on some cars, while lowering others.
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This special consumption tax rate would raise taxes on cars with engines larger than three liters (think anything bigger than a Toyota Camry) from 60% to 75% starting next July, reports Thanh Nien.
Before you jump for joy, there’s another clause in the proposal that calls for cutting taxes on small cars, or those with engines of 1.5 liters or less, from 45% to 25-30%.
In July, the government expressed concerns about the high number of large personal vehicles as they consume high amounts of fuel and aren’t suitable for the Vietnam’s infrastructure. The Trade Ministry, sharing the same qualms, suggested that the special consumption tax on cars with engines 6 liters and above be raised to 195%.
From July 2014 to July 2015, 103,500 automobiles were sold in Vietnam, perhaps signaling the arrival of the car age in Vietnam.
The country hopes that in-progress public infrastructure projects such as Saigon's BRT and metro systems and Hanoi's urban railway network will offset the surge in 4-wheeled personal vehicles.
[Photo via e90post]
