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Sunday, October 2, 2022

VND20 trillion tax payments for local cars proposed for delay

By Van Phong

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HCMC – The Ministry of Finance has proposed the Government delay special consumption tax (SCT) payments totaling more than VND20 trillion for domestically manufactured and assembled cars in June, July, August and September 2022.

If this is approved, this will be the third consecutive year since 2020 the special tax treatment applies to local car makers and assemblers. The deadline for the payment of the tax for the four months mentioned above is November 20, 2022.

That means the SCT extension will last 10 months. Specifically, the June tax extension will be four months. The July and August payment periods will be extended for three and two months respectively. And that of September will be extended for one month.

According to the ministry, this is an urgent support for domestic automobile manufacturers and assemblers this year. Therefore, this agency proposes the Government allow this to take effect from the date of signing until the end of December 31, 2022.

Regarding the impact on the State budget revenue, the ministry said that the average SCT paid by domestic automobile manufacturing and assembling enterprises to the State budget ranges from VND2,450 billion to VND2,800 billion per month.

In case the demand for electric vehicles increases when SCT for EVs is reduced, the State budget revenue will decrease by about VND2,000-3,000 billion. That means the average monthly reduction is VND170-250 billion.

The total amount of SCT expected to be extended in the four months is about VND9,300-11,400 billion.

With the tax extension within 10 months worth over VND2,000 billion per month, the combined amount would be over VND20,000 billion.

To facilitate the implementation of this policy, taxpayers eligible for the extension should send a request to the taxation agency by email or in writing.

These documents will be sent once for all the extended periods together with the time of filing the SCT return, so no new administrative procedures will arise.

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