Proposing that the government extend the deadline for paying excise tax on locally made and assembled automobiles

DNHN - The Ministry of Finance recently presented to the government a report on the adoption of a decree extending the deadline for paying excise tax on locally made and assembled vehicles.

Extending the deadline for paying excise tax and lowering registration fees for locally produced or assembled cars have helped relieve production and commercial issues. When domestic car manufacturing and assembly enterprises have greater financial means to continue operations, help people retain employment, and contribute to socio-economic recovery It costs VND 5,448 billion in October and November 2021. 

The Ministry of Finance recommends to the government that the tax payment deadline be extended for the due excise tax amount emerging in the tax periods of June, July, August, and September 2022 for vehicles made or assembled in Vietnam. The above tax period's tax payment extension term ends on November 20, 2022.

With this option, the time limit for paying excise tax will be extended by 10 months across four tax periods. The June tax payment term will be extended for four months; the July payment period for three months; the August payment period for two months; and the September payment period for one month.

This is an urgent assistance solution for domestic automotive makers and assemblers, according to the Ministry of Finance, and will be implemented in 2022, so it should be granted quickly. As a result, the Ministry recommends to the government that the decree take force from the date of signature until December 31, 2022.

After the extra time given in this Decree, cars made or put together in the United States must pay excise duty according to the rules that are already in place.

In assessing the effect of this policy on budget income, the Ministry of Finance said that the average amount of special consumption tax paid to the state budget by domestic vehicle manufacturing and assembly firms is in the range of 2,450–2,800 billion VND/month.

If the special consumption tax is cut with battery-electric cars replacing gasoline automobiles, it is estimated to reduce budget income by about VND 2,000-3,000 billion, or an average of 170–VND per month. Vietnamese dong 250 billion

The entire amount of excise duty that would be extended for four periods is estimated to be between 9,300 and 11,400 billion VND. The total amount of prolonged corporation tax is around VND 20,000 billion.

According to the Ministry of Finance, taxpayers who need more time to pay their excise tax must send a formal request online or by mail.

If the government gives permission, the program to lower excise taxes on vehicles made or put together in the country would run for the third year in a row, from 2020 until now.

An Nguyen