HO CHI MINH CITY: Many automobile importers and manufacturers in Vietnam’s Ho Chi Minh City said the new proposal from the Finance Ministry which seeks to change how luxury tax on cars is calculated, if applied, will increase car prices by 20 percent to 30 percent, local online newspaper Thanh Nien (Young People) News reported Tuesday.
Under the ministry’s plan, the special consumption tax on all vehicles with fewer than 24 seats will be based on their retail prices, with rates ranging from 15 to 60 percent.
The proposal, set to take effect on January 1 next year, is aimed to create a level playing field for importers and producers since their cars will be treated the same, the ministry said.
