Higher import tax levied on imported used cars
Higher import tax levied on imported used cars
The price of used cars imported from foreign countries will possibly be higher than the price of new vehicles following the Government's new calculation of import tax from September 1.
This was stated in a new decree issued by Prime Minister Nguyen Xuan Phuc.
Decree 122/2016 ND-CP showed that used cars with engine displacement of below 1,000cc will be taxed US$5,000, while used cars with engine between 1,000cc and 1,500cc will be levied $10,000.
Meanwhile, a mixed tax level for models with nine seats and lower and engine displacement from 1,500cc to below 2,500cc will be calculated as follows: import price multiplies according to the tax rate of the new similar model and adds $5,000. With regard to vehicles more than a 2,500cc engine, the import price multiplies in accordance with the tax rate of the new similar model and adds $15,000.
According to this calculation, the price of used cars will increase. For example, for a used Toyota Camry with an engine displacement of 2,000cc, which has an import price of $15,000, the import tax will be totalled at $15,500. The car's final price at customs will be $30,500.
This price does not include other taxes such as special consumption tax, value-added tax and corporate fees.
With this decree, the market keeps the door closed for the import of used cars.
The decree also mentions the import taxes for used vehicles with 10-15 seats. Taxes equaling $9,500, $13,000 and $17,000, respectively, will be levied on vehicles with engine displacement of 2,000cc and below, over 2,000cc to 3,000cc, and more than 3,000cc.
