HCMC – The Ministry of Finance has proposed the Government continue extending the payments of excise tax by local auto manufacturers and assemblers until the end of 2021.
The proposal was made after the Government on September 9 issued Resolution 105 providing support for enterprises, cooperatives and household businesses impacted by the Covid-19 pandemic, asking the ministry to consider the payment extension of excise tax, or special consumption tax, for domestically manufactured or assembled cars.
The ministry also proposed the Government allow it to build a decree with shortened procedures.
Since early 2021, the pandemic has taken a heavy toll on the automobile manufacturing and assembly sector, so it is necessary to offer support policies for local auto firms, according to the ministry.
Data from the Vietnam Automobile Manufacturers Association (VAMA) indicated that between January and August, the number of autos locally produced and assembled by VAMA members dropped by 13% against the same period of 2019, when the pandemic was yet to break out in Vietnam. Several local auto firms have reported a sharp drop of over 60% in auto sales.
Earlier in 2020, the Government issued Decree No. 109 allowing local auto firms to enjoy excise tax payment extensions.
Under the decree, the payment deadline of the March excise tax was extended to September 20, 2020, while the April and May deadlines were extended to October 20 and November 20, 2020, respectively. The excise tax payment deadlines for the remaining five months were extended to December 20, 2020.
The extension helped eliminate the financial difficulties facing local auto manufacturers and assemblers amid the coronavirus pandemic, the local media reported.
The Government’s Decree 109 and Decree 70 allowing a 50% registration fee cut for customers who buy locally produced and assembled cars have boosted domestic auto production, according to the ministry.
