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Vietnam might raise tariffs on automobiles, phones

(Xinhua)
Updated: 2008-06-13 14:29

HANOI -- Vietnam's Ministry of Industry and Trade has proposed the Finance Ministry to increase import taxes on automobiles with nine seats downward, high-capacity motorbikes, cosmetics, mobile phones and alcohol in the coming time, according to local newspaper Young People on Friday.

Under the proposal, the preferential most-favored nations (MFN) import tax on mobile phones will rise to eight percent from current five percent.

According to the Ministry of Industry and Trade, higher taxes, including luxury tax on cars are necessary to help Vietnam reduce trade deficit and traffic congestion.

Vietnam imported 35,400 completely-built automobiles, mainly cars, valued at 625 million US dollars in the first five months of this year, compared with 5,000 vehicles totaling 109 million dollars in the same period last year, according to the country's General Statistics Office.

Vietnam also spent 681 million dollars importing automobile parts and components for assembly between January and May, up from 204 million dollars in the same period last year.