Fuel smart vehicles to shine

September 22, 2011 | 11:10

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Fuel efficient vehicles are set to enjoy more tax incentives to prop up domestic manufacturing.

The Vietnam Automobile Manufacturers Association (VAMA) is proposing the Ministry of Finance (MoF) offer a top excise tax incentive to hybrid cars as long as they met global standards.

VAMA also asked the MoF to abrogate the requirement to prove hybrid cars could save 30 per cent of fuel compared to similar vehicle lines in the market.

It argued there were multiple hybrid car lines in the market made by diverse manufacturers whereas figures relative to car fuel usage are not always readily available.

In addition, testing fuel consumption by hybrid cars is costly.

In light of current regulations, cars running with petrol combined with electric or biological energy sources in which the petrol volume in use does not exceed 70 per cent of total used energy are subject to 70 per cent of excise tax applied to similar car lines.

Last year, the MoF composed a tax guiding draft towards petrol efficient hybrid cars and sought comments from competent state agencies.

The move came after the MoF received a proposal from businesses in trouble with these car lines’ preferential tax policies.

Earlier, customs bodies issued orders to collect tax arrears from hybrid car importers. The suspected cars were mostly Lexus’ HL line, Toyota Prius, Toyota Camry Hybrid or Honda Insight brands which were imported into Vietnam in 2009 and the importers claimed they were hybrid cars running with petrol combined with electricity.

vir.com.vn

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