Why is the import tax on cars drastically reduced, cars will be less prone to crashes?

(PLO)-Automakers will not cut safety standards once taxes are reduced.

A recent RMIT University study found that most accidents are blamed on poor or negligent driving. This is true to some extent. But there is another reason for many surprises coming from the auto import tax.

Dr. Daniel Borer, RMIT University Vietnam, said that modern cars are not only more environmentally friendly, but also focus more on safety.

Many models on the market today have integrated a series of intelligent technologies to help avoid accidents, such as facial recognition software to avoid falling asleep, a tire pressure monitoring system, side collision warning, etc. front or lane departure warning.

But these smart technologies are meaningless to those who cannot afford them.

An expert from RMIT University assessed that the high tax rate on cars imported into Vietnam has been hindering the purchase of the newest and safest cars on the market. When people can’t buy modern cars due to high taxes, they will continue to use old cars with outdated safety features until they break down. This is a danger to all road users. Even if the driver drives carefully, the car can still break down and cause a fatal accident. Most Vietnamese people who can’t afford a car will rely on cheaper means of transportation rather than motorbikes. This fact also does not help the traffic safety situation because motorbikes lack technology to ensure safety.

“However, the outlook ahead is brighter for Vietnam. The number of people killed by import tax on cars has decreased significantly in the past few years.

Driven by a free trade agreement with ASEAN, the Vietnamese government has reduced taxes on cars imported from ASEAN countries.

This has gradually reduced the need to import unsafe cars from India and China to switch to importing better quality cars assembled by world leading brands in Southeast Asia.

The average tax rate on imported cars has decreased from 49% in 2015 to 12% in 2020,” said Dr. Daniel Borer.

Research by RMIT University also shows that the number of car accident deaths can be reduced by 7.5% if the import tax on cars is reduced by 10%.