Domestic car manufacturers are proposed to extend VND 20,000 billion of Special Consumption Tax

The Ministry of Finance has officially submitted a report to the Government on the promulgation of a decree on extending the deadline for paying excise tax on domestically manufactured or assembled cars after drafting a draft and collecting comments from ministries, related industry.

Domestic cars are extended for 10 months to pay Special Consumption Tax

Accordingly, it is proposed that the Government stipulate: extending the tax payment deadline for the payable excise tax amount arising in the tax period of June, July, August and September 2022 for cars manufactured or assembled. assembled in water. The time limit for tax payment of the above tax period is until November 20, 2022 at the latest.

If this plan is approved by the Government, the time limit for excise tax payment will be extended: June tax payment period will be extended by 4 months; July tax payment period is extended 3 months, August tax payment period is extended 2 months and September is 1 month.

The total number of months to be extended is 10 months for 4 tax periods from June to September.

The Ministry of Finance said that this is an urgent solution to support domestic automobile manufacturers and assemblers and will be implemented in 2022, so the Ministry of Finance will submit to the Government for permission the decree to take effect from the date of signing. until the end of December 31, 2022.

After the extension, the payment of excise tax on domestically manufactured or assembled cars shall comply with current regulations.

Reduce tax payment by more than 20,000 billion

Assessing the policy impact, the Ministry of Finance said that the average amount of special consumption tax that domestic automobile manufacturers and assemblers pay to the state budget ranges from 2,450 to 2,800 billion VND per month.

In case the demand for electric vehicles increases when the special consumption tax is reduced with battery electric cars, replacing gasoline cars, it is expected to reduce budget revenue by about 2,000-3,000 billion VND, which is an average monthly decrease. 170-250 billion VND.

The total amount of excise tax that is expected to arise and is extended in 4 periods is about 9,300-11,400 billion VND, for a total of 10 months, the tax amount that businesses are extended is about 20,000 billion VND.