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share with Reporter Intellectual peopleMinister Dinh Tien Dung said that this morning (May 5) this issue will be officially discussed in the Government.
However, in the comment to the Draft Government Resolution on tasks, solutions to eliminate difficulties for production and business, promote the disbursement of public investment in the context of the Covid-19 pandemic, the Ministry of Finance is not in accordance with the proposed 50% reduction in registration fees and special consumption tax incentives for domestic vehicles.
The Ministry of Finance requests the Ministry of Planning and Investment to bring the issue of 50% reduction in registration fees and special tax incentives for consumption to national vehicles outside the draft Government Resolution because it may violate the rules of the WTO on MFN.
“This opinion violates the commitment to non-discrimination between goods produced in the country and imported goods by joining the World Trade Organization (WTO), so the proposal is not included,” the ministry said. Draft resolution “.
Previously, in a draft Resolution submitted by the Ministry of Planning and Investment to the Government, the agency proposed a 50% reduction in registration fees for domestic car buyers in 2020 and a preferential policy. Special Sales Tax Incentives for the National Automotive Industry These proposals will be reported to the Government for comment and then presented to the Standing Committee of the National Assembly and the National Assembly for decision.
In response to the views of the Ministry of Finance and the Ministry of Planning and Investment, the opinion of the Ministry of Industry and Commerce said: “This is the proposal of the Ministry of Industry and Commerce to encourage the production and assembly of automobiles nationwide. The Ministry of Industry and Commerce will review and ensure that this proposal does not violate Vietnam’s commitments to non-discrimination between domestic and imported goods by joining the World Trade Organization. “
He previously replied to the newspaper Intellectual peopleMr. Nguyen Chi Dung, – Minister of Planning and Investment, said that this morning (May 5), the Government will discuss the content of the previous draft resolution and what contents are in the authority of the Government, the Prime Minister will decide. What contents are under the authority of the National Assembly, the agencies of the National Assembly, the Government will give comments and present to the National Assembly.
According to WTO rules, the consumption tax, the value added tax and the corporate income tax belong to national taxes. These taxes must comply with the principle of national treatment, or the most favored nation (MFN) and subsidy policy.
The content of the MFN is that member countries are obliged to treat foreign goods, services and investors no less favorably than to treat national goods, services and investors (in relation to procedures, conditions, regulations …).
In particular, the WTO establishes that: Member States “do not impose internal taxes on imports that are higher than those applicable to goods produced in the country.
“There is no discrimination in the application of national taxes between imported goods and national goods for the purpose of protecting similar national goods or competing directly or being able to replace each other with imported goods”, the WTO MFN rules establish.
Furthermore, regarding national taxes, the WTO requires WTO members not to use national taxes for protection and subsidy purposes.
Therefore, in case of stimulating the market, supporting national auto companies, Vietnam will have to reduce 50% of the registration fee and the special excise tax for both imported and automobile cars. produced in the country. This is to ensure that there are no demands from other countries in the WTO.
Currently, excise duties are imposed on imported vehicles, domestic vehicles, imported parts, and domestic components. The car tax is based on the minimum cylinder capacity of 35% and the maximum of up to 150%, depending on the value of the car, depending on the cylinder capacity.
If the waiver and reduction of registration fees and tax incentives for domestic cars are not discussed and the government does not decide soon, this will surely be a major disappointment to businesses and consumers. Steam is expected to lower car prices in the near future.
Tuyen Tuyen
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