Ministry rules out luxury-tax cut for cars

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The Finance Ministry has said luxury tax on cars cut will not be cut this year, news website VnExpress reported.

The ministry rejected a Vietnam Automobile Manufacturers Association proposal to lower luxury tax, which is currently at 45-60 percent, saying the National Assembly has no such proposal.

But it promised that there would be no additional fees imposed on cars either.

Car sales in the country fell by 30 percent to 93,000 last year after the registration fee was hiked and the government was also considering an additional tax to limit personal vehicles.

But earlier this month the government decided not to impose the tax after all.

The registration fee has also been cut to 10-15 percent from 15-20 percent, and the renewal fee to 2 percent from 12 percent.

The registration fee was hiked last January to 15 percent from 10 percent in Ho Chi Minh City and to 20 percent from 12 percent in Hanoi .

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