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Jun 19, 2024 / 13:44

Vietnamese Gov’t defers excise tax for domestic automakers

This year's excise tax deferral amounts to approximately VND8.56 trillion ($336 million).

The deadline for paying the excise tax on domestically manufactured and assembled cars has been extended to November 20 this year.

 Car production at Vinfast's manufacturing plant. Photo: Pham Hung/The Hanoi Times

The move was mentioned in the recent Government Decree No.65, which extended the deadline for paying the excise tax for the tax period from May to September this year, which has been extended for domestically manufactured and assembled cars.

If the taxpayer submits additional returns for the extended tax period that result in an increase in the amount of excise tax payable before the end of the extended tax payment period, this increase is also eligible for deferral.

Branches and dealerships of car manufacturers are also eligible for the tax payment deadline extension and must declare this to the tax authorities. However, branches and units of enterprises that do not manufacture or assemble cars are not eligible for the extension.

This is the sixth time the excise tax on domestically manufactured and assembled cars has been extended. Last year, this policy was also implemented to support domestic businesses, deferring nearly VND8.1 trillion (US$318 million) in taxes. In the first three months of this year alone, nearly VND5.2 trillion ($204.3 million) was deferred.

According to the Ministry of Finance (MoF), this year's tax deferral amounts to approximately VND8.56 trillion ($336 million).

The MoF predicts that the automobile market and the economy will continue to face negative impacts from the economic crisis and geopolitical conflicts. The domestic automobile manufacturing and assembly industry, in particular, is experiencing an economic downturn, resulting in lower sales and decreased production.

The Ministry assesses that the policy will not affect this year's state budget revenue projections, as the last deadline for paying the tax is 20 November. After the extension period, this tax will be paid according to the existing regulations.