Auto Assembly Businesses Want Tax Reduction

At the seminar on business integration in promoting the development of the automotive support industry that took place in Hanoi, Mr. Vu Tan Cong, Secretary of the Vietnam Association of Automobile Manufacturers (VAMA), said. Currently, Vietnam's automobile assembly industry is developing well with enterprises, investing in modern lines, with a production capacity of about 55 cars / year.

According to Mr. Cong, Vietnam's automobile market is small but very potential for development. At present, the market size has reached nearly 160.000 cars / year in the last year. 2014 in the first month of the year 7 reached nearly 2015 vehicles, an increase of 124.000% over the same period. Vietnam's "universal automobile" period is the year of 60- 2021 when GDP per capita reaches USD 2022.

However, Mr. Cong said that at present, the automobile manufacturing industry, automobile parts only have the participation of about over enterprise enterprises, but only produce simple details, low technology and serve. domestically.

VAMA representatives proposed many tax and fee incentives for domestic production.

In order to develop the detailed manufacturing industry - automobile components, the VAMA representative proposed to establish an automobile supporting industry cluster in Hanoi, Quang Nam-Da Nang and Ho Chi Minh City-Binh Duong. In particular, he also suggested that the Government have policies to encourage localization, car manufacturers, assemblers will be entitled to a tax refund in the form of credit equal to about 3-5% of value (through chemical VAT menu) of details and components of cars purchased domestically in service of their automobile manufacture and assembly.

Mr. Cong also proposed a series of preferential mechanisms and policies for domestic and foreign investors to invest in the automotive support industry, including credit arrangements, corporate income tax incentives and land rent; supporting human resource training; permission to import used production equipment; Exempt import tax on production equipment ...

The representative of VAMA also did not forget to emphasize the message that has appeared a lot recently, which is to ensure fairness between domestically produced cars in CKD format and CBU imported CBU cars of the same type in the establishment. calculate special consumption tax; Especially, it is proposed to reduce the roadmap and proceed to eliminate the excise tax for cars.

Not stopping there, the VAMA representative also proposed to support a part of production costs for domestic car manufacturers in the form of credit because of the low market capacity, so the cost of domestic car production is high. 20% more than the production cost of the same vehicle in ASEAN countries.

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