A Vinfast assembly line in the northern province of Quang Ninh. (Photo: VNA) The draft decree recommends that payments over 4.4 trillion VND (191 million USD)for October and November be delayed until late December.
Underthe draft decree the payment deadline of the October excise tax, or specialconsumption tax, for domestically manufactured or assembled cars will beextended to December 20, while the November deadline will be extended toDecember 30, according to the MoF.
Thedraft decree was set up following the results of Decree No 109, whichallowed local auto firms to enjoy excise tax payment extensions in 2020 toprovide support for enterprises impacted by the COVID-19 pandemic.
Tobe entitled to the extension, local automotive firms will have to submit onlineor written applications for extensions to tax agencies when making excise taxdeclarations, in line with current regulations.
Ifthe application is not submitted while making tax declarations, the firms willhave to submit the applications before December 15.
Ifautomotive firms, who were not subject to the incentive during the extensionperiod, are found to have obtained an extension, they will have to fully paytheir excise taxes and delayed amounts.
Afterthe extension period, if tax agencies discover firms who are not subject to theincentive but still hold an extension, they will have to pay fines on top offully paying their excise taxes and delayed amounts.
Mostof the relevant ministries and agencies agree with the MoF's draft decree.
TheMinistry of Foreign Affairs has agreed that it is essential to supportbusinesses in overcoming the difficulties of the COVID-19 pandemic. Bydoing so, local automobile manufacturers and assemblers, as well as automobilejoint-venture car makers and assemblers in Việt Nam, will benefit from thedecree. This will allow them to gather more capital to maintain and expandtheir production.
TheVietnam Chamber of Commerce and Industry (VCCI) has also come to a consensus onthe extension policy to support businesses, as proposed by the Ministry ofFinance. VCCI recognises that local automobile assemblers and manufacturershave played an important role in the country’s economic development. Themanufacturers and assemblers have made great contributions to the State budgetthrough the collection of all kinds of taxes and fees, as well as creating jobsfor hundreds of thousands of people.
Successfullymaintaining a domestic automobile industry will also be an opportunity totransfer advanced technologies to the local auto industry./.
VNA
