Thursday, July 31, 2008

Vietnam to triple car registration tax-dealers

HANOI, July 30 (Reuters) - Vietnam will raise car registration taxes from next month to up to 15 percent, from 5 percent now, in an effort to reduce traffic congestion and fuel consumption, dealers said on Wednesday.

They said the increase in taxes, approved on Tuesday, would be effective from August 14 for passenger vehicles with less than 10 seats.

State media reported Prime Minister Nguyen Tan Dung signed the decision to raise the tax on Tuesday.

The government was contemplating raising special consumption taxes on cars with a capacity of 3 litres and more to 60 or 70 percent, from the current level of 50 percent, dealers said.

Car sales in Vietnam nearly triped in the first half of this year from the same period last year, the Vietnam Automobile Manufacturers Association said earlier this month.

Vietnam has already raised tariffs on imported cars to 83 percent from 70 percent previously.

Car imports in the first seven months surged nearly 200 percent to $1.83 billion, with the volume of fully assembled vehicles jumping more than 265 percent to 43,500 units, government figures show.