nirvanatgr
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Joined: 11 May 2011
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 Posted: Thu Jul 19, 2012 9:33 pm Post subject: Different registration fees applied on same pick-up auto lin |
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Cities and provinces in Vietnam have imposed different registration fees for the same models of pick-up vehicles due to a disagreement over their use, according to the Vietnam Automobile Manufacturers' Association (VAMA).
Different registration fees applied on same pick-up auto line
Some localities consider vehicles including the Ford Ranger, Mitsubishi Triton and Toyota Hilux as passenger cars, while others classify them as commercial vehicles.
Hanoi imposes registration fees of 2% for these models, while the rate ranges between 10% and 20% in HCM City and other provinces. For example, in Binh Duong Province it’s 10%, Son La Province 12% and Danang City 15%. The fee can even vary in the same province or city. In Binh Duong Province, the fee is 2% in Bien Hoa City, while it is 10% in Nhon Trach District, VAMA said.
On March 5 this year, the General Department of Taxation issued a circular on registration fees for pick-up cars, saying that a fee of 10-20% will be valid for pick-up autos and vans used to transport passengers which have from 4-10 seats.
Manufacturers such as Toyota and Mitsubishi have asked the Ministry of Finance to apply a 2% fee for these models.
According to VAMA, the Vietnam Register recognises these models as commercial vehicles on their import certificates.
Therefore, it is violation of the ministry’s regulations for cities and province to impose fees of 10-20% that are usually applied to passenger vehicles. This is not only affecting customers’ rights, but also causing difficulties for auto businesses.
The Saigon Times said that VAMA has sent documents to tax departments, the General Department of Taxation and the Ministry of Finance to explain the problem and clarify that the cars should be classed as commercial vehicles.
VAMA has persuaded tax agencies in some localities, including Hanoi, Haiphong, Quang Ninh, Danang and Di An Town in Binh Duong to apply fees of 2% for these cars. However, many cities and provinces nationwide have maintained levels of 10-20%.
The association is waiting for a specific instruction from the General Department of Taxation for local tax agencies to ensure the correct registration fee rate of 2%Tourist Vietnam
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