CBU cars see radical changes in special excise duty

April 07, 2016 | 20:08

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On April 6, the National Assembly approved the adjustments to the special excise duty on imported completely built unit (CBU) cars with nine seats and below, in line with amendments and additions to the current laws on Value Added Tax, Excise Tax and Tax Administration.

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Regarding special excise duty applied to CBU cars with nine seats and below, vehicles with a maximum cylinder capacity of 2,000 cubic centimetres (cc) will enjoy tax cuts, ones between 2,000cc and 2,500cc will see no change while ones of higher capacities will experience tax hikes.

In particular, excise duty for cars of less than 1,500cc will be reduced by 5 per cent, to 40 per cent by July 1, 2016 and subsequently dropped to 35 per cent by January 1, 2018.

Duty on cars between 1,500 and 2,000cc will remain unchanged at the existing 45 per cent until December 31 and then will go down to 40 per cent since January 1, 2018.

Excise duty on imported cars with a cyclinder capacity between exceeding 2,000 and 2,500cc will be maintained at the currently applied level of 50 per cent.

Tax will rise for cars with a cylinder capacity between exceeding 2,500 and 3,000cc, to 55 per cent from the existing 50 per cent since July 1, 2017. The figure will increase to 60 per cent since January 1, 2018.

Besides, the duty imposed on cars having a cylinder capacity between exceeding 3,000 cc will experience dramatic increase from the currentl level of 60 per cent.

In particular, the tax levels applied from July 1 this year will rise to 90 per cent for cars between exceeding 3,000 and 4,000cc, 110 per cent for cars between exceeding 4,000 and 5,000cc, and 130 per cent for cars between exceeding 5,000 and 6,000cc.

Excise duty rate applied to cars with a cylinder capacity over 6,000cc will increase to 150 per cent, marking the highest level of tax rise.

By By Ha Vy

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