traveling Vietnam

It's so cute when him look at me.!!!:)..

Car prices after 2018 remained by 2015 according to the new tax treatment - Vietnam WTO

Car prices after 2018 remained by 2015 according to the new tax treatment

The Ministry of Finance launched a special consumption tax calculation in response to the new tariff reductions in 2018.
To increase revenues, the Finance Ministry proposed to change the tax treatment for cars with less than 24 seats or less, to deal with the tax rate decreased from 50% starting in 2015 to 40% in 2016, 30% in 2017 and 0% in 2018. In relation to this policy, the article analyzes the entire import car market today.

Ordinary vehicles under 24 seats are mass produced in ASEAN markets and will have a big change from 2016 to 2018. The following excise taxes, VAT ... does not change the current, have a big change from import tariffs.

Import duties outside ASEAN: Under current regulations, if Vietnam is not committed under regional agreements with specific markets, the tax, automobile import tax would apply tariffs with WTO commitments ( MFN).

With China the majority of these cars are not entitled to tax incentives, until 2018 the tax rate was 50%, higher than the current 50% to 90% and available. With Korea, the majority did not have any significant deals. Compared to other similar countries. So the market is difficult to compete with other ASEAN markets here.

Import tariffs in ASEAN: ordinary tax rate and the most common is 50%, 40%, 30%, 0% for the corresponding year in 2015, 2016, 2017, 2018. Particularly PLU carrying both cargo is 15% and 0% in 2018 approached.

The new special consumption tax: applicable from 01.01.2016

1. According to the draft decree, the Ministry of Finance said the current regulations on excise taxed price of cars imported less than 24 seats, for domestically produced goods, the excise taxed price is the selling price of production facility, including production costs (or cost) plus the cost of domestic sales (cost management, packaging, advertising, exhibit, shipping, warranty, ... if there ), plus interest of taxpayers.

2. Will this model at least rise in 2016, due to reduced import duties only 10%, even higher risk of price increases. Prices started falling back slightly in 2017 based on 2016 prices and prices will fall sharply in 2018, but the decrease will not be expected today.

3. Calculated on the basis of a draft

- Vehicles with import price is $ 20,000, the tax is 50% of imports in 2015, this car is priced at $ 30,000; Excise tax calculation that 50% of vehicles in the port price is $ 45,000 not including transportation, interest ... Finally the car will sell for around $ 55,000. $ 5,000 Interest and other expenses was $ 5,000.

- Vehicles with $ 20,000 in 2016 with import duties of 40%, so the car is priced at $ 28,000 ports; Money in circulation chain that vehicles priced $ 10,000 is $ 38,000; SST 50% ($ 19,000) so the price is $ 57,000 vehicle. So to have a stable rate $ 5,000 selling price will be increased by $ 12,000 (compared to 2015).

- Similarly in 2017 the price was $ 20,000 car with a 30% import duty such as 26,000 vehicles, the process flow is $ 10,000, so SCT 50% tax rate is 36,000 * 50% = $ 18,000 car is priced at 54,000 USD ($ 3,000 reduction compared with 2016.

- Till 2018 vehicles priced $ 20,000 or import tax = 0, flow $ 10,000 (unchanged) that excise tax is $ 15,000, the car is priced $ 45,000, is the price after 2018 and fell off again .

2018 turned out to price the car after car prices in 2015 are still with no interest charges. Finally dream will vanish cheap cars to consumers in Vietnam.

For those in the auto industry, then this is no surprise, because who would have guessed the Ministry of Finance will change other taxes to limit, reduce the deficit ... Go go back calculated equivalent tariff was 50 % import duty, only changes due to the new excise tax.

USD rate has increased annually, as of 2018 so car prices will continue to rise if calculated according to the value of the dong.

Conclude:

1. Vietnam dream car should select vehicles for passenger and freight (truck). Since taxes and fees, excise tax ... finally low price and acceptable, at least for tax loss.

Example: $ 16,000 vehicles in Asean or import tax = 0, the circulation of $ 8,000, this car is priced at $ 24,000. Add 15% = 3,900 SCT, the final price of $ 27,600 vehicles. Actually used pickups no different than the 5-seater car. The only disadvantage is the limited use of 25 years, longer than the sedan cars and garages must have room for. The advantage of it is very large, suitable terrain, transporting more goods because there are loads of about 1 ton (all people). It is extremely important that the lowest tax paid.

2. Consumers sprint race purchase this car in 2015, due to lower prices in 2016 and 2017 than this year will increase to imported vehicles staggering.

3. The standard tax rate VAT charged after Vietnam that New York has huge disparities not to mention that the car from 9 seats. High levels in Vietnam than 3.18 times. My car is priced at $ 20,000 to $ 52,000 to Vietnam is, after VAT tax charge was $ 11,150, while the cost after VAT tax in New York is 3,500

4. Vehicles domestic manufacturers compete without fear anything. Because components taxes also about 0%, and domestic production costs due to lower circulation path imported vehicles are shipped, intermediate. Whereas car prices from overseas had that process already.

5. Dream Cheap car from Vietnam will vanish. Expectations, hopes crumble. I think you should choose pickups.

6. Pickup will spike in the future. Because the essence of this vehicle as a sedan. Contains 5 seats and 800 kg boxes, automatic and diesel fuel saving travel into and out of the inner city are good. Particularly outstanding suburban back. The most important thing that any tax rate: all amounts only 4,000 to $ 5,000, that only 2% of registration instead of 10-15% as vehicles under 10 seats.

7. Due to tightening load of MOT, the big trucks (gross weight of 24 or more) will increase the import surge in the coming years. Water can not be produced in this car. As for buses, 24 seats, small trucks, the domestic production of many, should import no big changes.

* Now all dream about cars will disappear with consumers.

My baby playing toy-car..!

Tax funny images!! Who's been wait...?