Vietnam hikes car import tax to 83 percent

Last Updated: Tuesday, April 22, 2008 09:46:44 Vietnam (GMT+07)
Customers will have to shell out more for imported cars following a fresh hike in tariffs
The tariff on cars went up from 70 percent to 83 percent and on components from 3 percent to 5 percent, according to a Finance Ministry's decision which took effect today.
It is for the second time in the last two months that the government has tweaked the tariff on automobiles.
Last month it raised the import duties on new cars to 70 percent from 60 percent.
Car traders were not surprised by the ministry’s decision.
Nguyen Minh Hung, the owner of a car showroom in Hanoi, said, “We knew about the increase a week ago. We just didn’t know when the decision would be signed.”
Automobile importers had continued to buy cars heavily after last month’s increase since they had foreseen a further increase.
Figures from the Ho Chi Minh City Customs Department show that the number of cars imported in the first three months rose year-on-year from 422 to 2,593.
“The prices of cars increased by 6 to 8 percent following the hike in the tariff last month,” Ha Minh Tuan, Hyundai Motor Vietnam’s general director, said, adding the prices would go up again.
Traders said prices were likely to go up by US$1,000-3,000.