Importers raise concerns about effect of changes to SCT regime.
Automobile importers in Vietnam have sent a petition to Prime Minister Nguyen Tan Dung, Deputy Prime Minister Hoang Trung Hai, Minister of Industry and Trade Vu Huy Hoang, Minister of Finance Dinh Tien Dung, and the Economics Committee of the National Assembly regarding the difficulties in their operations caused by the recently-issued Decree No. 108.
On October 28 the government issued Decree No. 108/2015/ND-CP, to take effect from January 1, 2016, which changes a number of regulations on special consumption tax. With the new tax formula regulated in the Decree, taxes would be applied not just on the CIF price but also on the importers’ other costs as well as profits, increasing the retail price by a considerable margin. This will have consequences for consumers, the revenue of importers, as well as State Budget revenue.
Genuine importers of ten international brands - Audi, BMW, Mini, Rolls-Royce, Bentley, Lamborghini, Jaguar, Land Rover, Porsche, Renault, Subaru, and Volkswagen - complained that frequent changes to laws and regulations in Vietnam gives the country a poor reputation and creates an unstable and unsustainable environment for them to develop.
The importers suggested that the government postpone the date of effect for Decree No. 108 by six months, to July 1, so they may have more time to study it and make changes to their business activities to avoid any disruption.
They also asked policymakers in the government as well as the Ministry of Finance to consult with them before making any changes to regulations, in order to ensure policy consistency and market stability.