HCMC – The Government has issued a decree extending excise tax payments totaling over VND20 trillion by local auto manufacturers and assemblers.
This is the third straight year that the payment deadline of the special consumption tax has been extended for domestically manufactured or assembled cars since 2020.
In line with the decree taking effect on May 21, auto firms in the country are entitled to the extension from June to September this year. The deadline for the payment of the tax for the four months is November 20, 2022.
Speaking of the impact on the State budget revenue, the Ministry of Finance said that the average excise tax paid by local automobile manufacturing and assembling enterprises to the State budget ranges from VND2,450 billion to VND2,800 billion per month.
In case the demand for electric vehicles increases when excise tax for EVs is reduced, the State budget revenue is expected to fall by VND2-3 trillion. As such, the average monthly reduction is VND170-250 billion.
The total amount of excise tax payments extended for the four months this year is about VND9.3-11.4 trillion.
With the tax extension within 10 months worth over VND2 trillion per month, the combined amount will be over VND20 trillion.