Finance ministry rethinks tax-free car imports by OVs
The Finance Ministry has proposed ending a long-running policy that grants import tariff and value-added tax exemptions to cars imported by Overseas Vietnamese when they return to Vietnam to live or work.
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The proposal was made in a draft decree on the Law on Export, Import Duties that will take effect in September.
Currently, overseas Vietnamese are allowed to import a car and a motorbike duty-free as used assets when moving back permanently or working in Vietnam at the request of governmental agencies for at least 12 months.
Local media reported that many people have abused the policy to import luxury cars without paying taxes and then resell them in Vietnam.
Some have registered for permanent residency in Vietnam to enjoy the benefit without actually living in the country, the media reported.
According to the financial ministry, more than 1,000 cars have been imported under the policy but fewer than 100 are registered under the name of an overseas Vietnamese.
The tax exemptions should be abolished because some car importers have abused the policy to evade huge taxes, it said.
