The General Department of Taxation is worried about cutting off the supply of automobile manufacturing

The General Department of Taxation is concerned about the disruption of the supply chain, affecting the production of automobile manufacturers in Vietnam.

On June 3, 2022, the General Department of Taxation held a meeting to evaluate the implementation of tax work in May and implement some solutions in June of this year.

According to General Director Cao Anh Tuan, after 5 months of implementing the Government’s solutions to support economic recovery and growth, Vietnam’s economy has received many positive news.

Car production at Thaco factory in April 2022

However, the tax industry leader said that the epidemic situation still had unusual manifestations, while the Russia-Ukraine conflict was still tense, and at the same time, the world oil price remained at the high level it had been. The impact on revenue from crude oil in the first 5 months of 2022 will push up the costs of businesses and will directly affect production and business activities of organizations and individuals.

“This can be clearly seen in some industries, such as auto manufacturing, where the supply chain is broken,” said the tax industry leader.

In fact, the supply chain for automobile production in Vietnam from the beginning of the year to now has not been seamless, which is acknowledged by car manufacturers.

Scarcity of cars, pushing prices up or selling “beer with peanuts” is quite common, not only for cars but also for motorbikes.

Regarding support policies, in the past 6 months, the National Assembly and Government, according to their functions and competence, have issued a series of policies to support the auto industry.

In December 2021, the Government agreed to reduce the registration fee by 50% for domestically assembled cars, the policy period is 6 months, ending on May 31, 2022.

In January 2022, the National Assembly passed a proposal to amend the excise tax law for electric cars. Accordingly, battery-powered cars (EVs – pure electric vehicles) are entitled to a reduction of excise tax from 15% to 3%, the policy period is 5 years, ending on December 31, 2027.

The latest, on May 21, 2022, the Government issued a decree allowing the extension of excise tax payment of automobile manufacturers and assemblers until November 20, 2022, which is 6 months late for tax payment compared to the previous year. with the usual tax payment deadlines.

To ensure the completion of the budget collection task in June as well as in 2022, the General Department of Taxation has requested that functional units urgently coordinate with localities to review and capture revenue sources; carefully analyze and evaluate the impact of the support policy packages of the National Assembly and the Government on budget collection to develop a detailed monthly collection scenario for each region, revenue, tax rate and participation. advise the General Department of Taxation.