This is the content of Decision No. 229/QD-TTg dated February 04, 2016 of the Prime Minister on the mechanism and policies for implementation of the strategy and plan for development of Vietnam automobile industry.
In particular, enterprises that invest, manufacture over 50,000 priority automobiles per year, or manufacture engine parts, gearboxes and motion system will be entitled to incentive corporate income tax; incentive corporate income tax for each project shall be determined by the Prime Minister.
Also in this Decision, the Prime Minister confirmed that national competitive bidding shall be applied with procurement funded by state budget or development credits and business projects supported by Government which use priority domestically manufacturable vehicles. If priority domestically manufacturable vehicles are acquired through international bidding or purchased as CBU imports, procurement cost and operating cost shall not be eligible for supports from the state budget.
Besides, the special consumption tax rate on priority consumer cars (with low cylinder capacity, low fuel consumption and small size suitable for current traffic conditions and consumers’ finance) will be reduced; levy a high and extremely high special consumption tax rate on automobiles with 9 or fewer seats on which a high absolute duty is determined and vehicles that have cylinder capacity of over 3,000 cm3, consume much fuel, come in large size not fitted for current traffic conditions and consumers’ finance; study and impose higher environmental fee on vehicles with cylinder capacity of over 3,000 cm3…
This Decision takes effect on the signing date.
