People Frustrated With Automobile Tax Policy

Those are the main ideas at the seminar "Current situation and solutions to overcome difficulties in developing Vietnam's auto industry and market" on September 27 in Hanoi.

The workshop is organized within the framework Vietnam automobile exhibition 2012 with the goal of sharing and answering questions of experts, policy makers, and synthesizing recommendations for the development of the automotive industry. However, the lack of participation of representatives of the Ministry of Finance has caused many unresolved concerns, and most of the time is devoted to expressing frustrations and inadequacies in the Vietnamese automobile market, especially was Automobile tax policy, fees.

Taxes and fees make the automobile industry backward?

At the seminar, Mr. Pham Anh Tuan, Deputy Director of the Heavy Industry Department, Ministry of Industry and Trade, said that the number of cars consumed in the first eight months of 8 decreased by 2012% compared to the same period in 33, mainly due to the policy. internal, not due to world economic influence. Proving this, Mr. Tuan said the ASEAN market in the first 2011 months of this year grew 5%, of which Thailand soared 151%. Yet Vietnam is the only country with a declining auto market. This shows that Vietnam has not run out of opportunities for the development of the auto industry, but what is needed is a consistency and stability in policy.

Laurent Charpentier, Chairman of Vietnam Automobile Manufacturers Association (VAMA) and General Director of Ford Vietnam, affirmed that the instability in tax and fee policies is the cause of the decline in the number of cars sold. During the year, the Company did not encourage the industry and automobile industry to develop commensurate with the potential and advantages of Vietnam.

Demand for car ownership in Vietnam is still very large

Agreeing with these opinions, Mr. Do Huu Hao, Chairman of the Vietnam Association of Automotive Engineers, former Deputy Minister of Industry and Trade, said that it is not the people that do not have money, but the constantly changing policies make people discouraged. heart; At the same time, the auto industry is caught in a difficult situation to develop but is constrained by the general policy of still wanting to limit the ownership and use of cars. However, Mr. Hao still believes that Vietnam cannot help develop the auto industry, simply because it is the main means of transportation of the world, not in Vietnam, at least for many decades to come.

Auto market: Stable ...

Vietnam automobile industry ...

Proposing to remove import restrictions ...

 

DO READ

“People just change the technology and the quality of the car car In order to save raw materials, fuel and increase utility, people cannot give up cars to come up with a more affordable alternative for many decades to come. Therefore, there is no reason not to develop an industry in Vietnam "- Mr. Hao said.

However, how to develop and where to base it? ... are still open questions. Representative of other manufacturing enterprises, Mr. Bui Ngoc Huyen, General Director of Vinaxuki Motor Company shared that Vietnam has many advantages in terms of natural resources, human resources and even an automobile development strategy, but when showing unreasonable policies, overlapping among ministries. Mr. Huyen took the example from the completed car production project of Vinaxuki, produced nearly 60% localized cars, but in order to get bank loans, they forced his company to rewrite the entire plan. Project development plan… Or the inadequacy of the toll collection policy for cars: the same type of passenger car under 9 seats, but a large 4.0 liter motor vehicle still has the same road fee as a small car under 1.0 liter..

"Above said, below do not listen"

In addition to policy instability which is a key issue, the issue of inconsistency between central and local policies was also mentioned at the workshop. For example, the policy on registration fees has been generally stated that the lower the declared price is lower than the tax agency's, the price of the tax authority will be applied, while the higher the declared price will be applied. However, Mr. Tran Tan Trung, General Director of Lien A International Company - the official distributor of Audi in Vietnam, said that his business has struggled from the beginning of the year until now because “paying a lot of taxes is not allowed to ". Specifically, with the price of a car imported to Vietnam about 100 VND, it is registered with the tax authority, but when the customer asks for more options from the manufacturer, the price of the car back to Vietnam increases to 110 VND, the tax authority. also does not allow the fee to be paid at 110 VND!

The pressing tax policy takes up most of the conference time.

Import of cars in October of October: Maintaining the bottom

The car market shrinks because of fees

Car market has not escaped the "afternoon market" scene

Car market still "set the number"

DO READ

In addition, Mr. Trung also emphasized the arbitrary in making proposals related to policies, traffic, making people worry, businesses fear, market turmoil. The recent typical examples are proposing the use of tuk tuk as in Thailand, or removing Circular 20 / TT-BCT ... Mr. Trung suggested policy makers before promulgating, suggesting to participate carefully survey the people in the industry, manufacturing and importing enterprises to make close recommendations ... Another issue that is also frequently mentioned in auto industry conferences is the conflict between development. infrastructure, automobile industry development and urban traffic congestion. Mr. Andreas Klingler, General Director of Prestige Sport Cars Company - a distributor of Porsche cars in Vietnam, said that we cannot wait for infrastructure development to develop. car market. Instead, the solution is to lower the car prices appropriately by adjusting the appropriate taxes, in order to increase the budget revenue for infrastructure investment, along with the collection of inner-city vehicle circulation fees.

"The problem of Vietnam is a serious imbalance between people's income and car prices", Mr. Andreas Klingler emphasized.