A Ministry of Transport proposal to waive tax on imported buses has come under fire from the trade and finance ministries who fear it will hurt the domestic auto sector.
The transport ministry recommended that the waiver be made for buses to be used for public transport in Hanoi and Ho Chi Minh City.
But the Ministry of Industry and Trade said Vietnam is capable of producing buses, so the transport ministry should prioritize local manufacturers.
The finance ministry has asked the transport ministry for more information to justify its proposal since there are regulations that allow such incentives in certain cases.
Minister of Transport Dinh La Thang wants the government to abolish taxes on imported buses and parts which are currently 70 percent and 10-32 percent respectively.
The waiver will remain in effect until 2015 if approved.