The Ministry of Finance does not support Toyota and Ford’s proposal to reduce conditions


The Ministry of Finance has just submitted a report to the Government on the draft Decree amending and supplementing a number of articles of Decree No. 26/2023/ND-CP of the Government on Export Tariffs and Preferential Import Tariffs, List of goods and absolute tax rates, mixed taxes, and import taxes outside the tariff quota.

In this Proposal, the Ministry of Finance does not support the proposal to reduce the output conditions of the Tax Incentive Program for automobile production and assembly. Previously, the Vietnam Automobile Manufacturers Association (VAMA) and the People’s Committee of Hai Duong province proposed to consider Ford Vietnam Co., Ltd.’s proposal to adjust and reduce output of the 2023 Tax Incentive Program.

Conditions to participate in the Tax Incentive Program and apply the MFN tax rate (preferential export tax rate, import tax rate) of 0% for imported components and spare parts for automobile production and assembly are: Automobile manufacturing and assembling enterprises must have a Certificate of eligibility for automobile manufacturing and assembly issued by the Ministry of Industry and Trade and meet the conditions prescribed in the Decree (including conditions on components; conditions on vehicle models; conditions on output; conditions on emissions; conditions on incentive consideration periods; conditions on documents and procedures).

In particular, businesses must meet the production conditions (including minimum general output for all types of vehicles and minimum specific output for each vehicle model) according to regulations for each vehicle group. Regulations on output conditions are intended to encourage businesses to invest and expand production scale. Businesses will not enjoy the Program’s preferential policies if they do not meet the output conditions during the tax incentive consideration period (6 months or 12 months).

“Output conditions are an important and prerequisite condition for businesses to invest capital, expand production, and increase the localization rate, thereby contributing to bringing the auto industry in the right direction and direction. policy of the Party and State”, the Ministry of Finance affirmed.

The Ministry of Finance said that in recent times the Government has had many policies to support the domestic automobile manufacturing and assembly industry, and VAMA’s continued proposal to reduce output is not appropriate with the current situation.

Regarding the proposal to add some spare parts and components to the List of group 98.49 to apply the 0% MFN tax rate of Toyota Motor Vietnam Company, the Ministry of Finance also disagrees.

According to this agency, the items in group 98.49 in the List of basic regulated product groups are all items that cannot be produced domestically and have high scientific and technological content and complex manufacturing to promote the industry. The domestic automobile industry develops, reducing production costs.

Regarding spare parts and components that Toyota Company proposed to add to the List of group 98.49, the Ministry of Finance said that there are a number of HS codes proposed by Toyota Motor Vietnam Company that have domestically produced products. . Some HS codes proposed by Toyota Motor Vietnam Company have been included in group 98.49. Because the Company only provides HS codes, without a specific description of the goods, the Ministry of Finance has no basis to specifically consider the Company’s proposal.

For raw materials, supplies, consumables or electronic components of cars (pipes, screws, bolts, racks, frames, accessories made of iron, steel or basic metals… .), the Ministry of Finance proposed not to include the content of this group in group 98.49 to apply import tax rates under the Tax Incentive Program.

Because these are basic goods that can be produced domestically, there needs to be a policy to protect domestic production; At the same time, the quantity of goods used in the production and assembly of cars is difficult to determine as a basis for applying preferential tax rates.

“Thus, the products that Toyota company recommends are mostly domestically produced products, along with the list of group 98.49 that has been revised many times and is basically consistent with practice. Accordingly, , the Ministry of Finance submitted to the Government not to add spare parts and components to the List of group 98.49 to apply the MFN tax rate of 0% as proposed by Toyota Company”, the Ministry of Finance stated its opinion.

Officially reducing registration fees for domestically produced cars by 50%.On June 28, the Government issued a Decree regulating registration fee rates for cars, trailers or semi-trailers pulled by cars and other types of vehicles similar to cars manufactured and installed. assembled in water.

The article is in Vietnamese

Tags: Ministry Finance support Toyota Fords proposal reduce conditions


NEXT Ministry of Public Security headquarters project at 44 Yet Kieu: Ensuring the highest benefits for the people