The Ministry of Finance proposes to extend VND 20,000 billion of special consumption tax on domestically produced cars
In the plan just submitted to the Government, the Ministry of Finance proposes to extend the payment of excise tax for the tax period from June to September 2022. Businesses will have to fully pay this extended tax amount before November 20, 2022.
According to statistics of the Ministry of Finance, in recent years, the average amount of special consumption tax paid by domestic automobile manufacturing and assembling enterprises is from 2,450 to 2,800 billion VND/month. In the scenario where the demand for electric vehicles increases thanks to the reduction of excise tax on battery electric vehicles, the estimated tax amount collected each month in 2022 is about VND 2,000 billion.
Businesses are entitled to late payment of excise tax of the tax period June, July, August, September until the end of November 20. The total amount to be extended is about 20,000 billion VND for 10 months. Because this is an urgent solution that needs to be issued immediately to promptly support businesses, the Ministry of Finance asked the Government to allow the decree to take effect from the date of signing.
If this decree is approved, the excise tax reduction policy for domestically manufactured or assembled cars will be applied continuously for 3 years, from 2020 to now.
According to the Ministry of Finance, sales activities of enterprises were negatively affected in the period from June to September 2021 due to anti-epidemic decisions. The car factories of some manufacturers were also affected because of the lack of chips and assembled components due to the disruption of the global supply chain. The Vietnamese auto market has experienced many ups and downs in the past year and needs support from the State.
The extension of tax payment for domestically manufactured and assembled cars is not consistent with international commitments to which Vietnam has joined. However, the Ministry of Finance assessed this policy as necessary to create conditions to help businesses overcome difficulties.
Not only Vietnam, many other countries have also applied measures to support the domestic manufacturing industry during the epidemic period. According to the Ministry of Finance, because the extension time is not long, the possibility of being sued is not high. Because a lawsuit is only intended to terminate existing measures, it cannot be against a completed measure.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
