VAMI reports tax avoidance by car importers

15:50 | 03/08/2016 Society

The Vietnam Association of Mechanical Industry (VAMI) has sent a document to the finance ministry, reporting that several auto importers have evaded tax by declaring incorrect imported car prices.

VAMI reports tax avoidance by car importers

The Ben Chassis HoWo 8x4 model — Photo

VAMI said the businesses, which import cars from China, had reported lower prices of imported cars.

The Ben Chassis HoWo 8x4 model, for instance, which has an import price of US$40,900, was declared to be worth between $21,865 and $24,740 to the taxman, a difference of $16,160 to $19,035.

"Therefore, it's estimated that the state lost $4,040 to $4,759 per car," VAMI said.

It said the importers' misleading declaration about car prices not only caused losses to the State's budget, but also created unfair competition between firms that assembled cars locally and the importers.

The association asked the ministry to tighten rules for relevant agencies to conduct stricter examination and supervision of car import declarations at border gates.

It also asked relevant sectors to inspect car importers suspected of violating laws to save tax.

The ministry should have sanction to strictly punish the businesses found to have declared incorrect imported car prices, in order to create a fair business environment and trust among firms that assemble vehicles locally./.


Source: VNS