Pickup trucks, especially double-cab models, are increasingly popular worldwide. This article analyzes the use of pickup trucks for passenger transport in various countries, particularly Vietnam and ASEAN nations, along with relevant tax policies.
Pickup Trucks: Diverse Functionality and Economic Role
Pickup trucks, with their rear cargo beds, meet diverse freight transport needs. The double-cab type, with two rows of seats, offers convenience for both passenger and cargo transport. In many countries, pickup trucks play a vital role in agriculture, small-scale transport, family businesses, and recreational activities.
Current Use of Pickup Trucks for Passengers in Vietnam
In Vietnam, double-cab pickup trucks are classified as cargo vehicles according to TCVN 7271:2003, Amendment 2:2010. However, in practice, these vehicles are used for various purposes, including passenger transport. This raises questions about the suitability of the current tax policy.
A pickup truck driving on a rural road in Vietnam.
According to statistics, the pickup truck market share in Vietnam is relatively small, accounting for only about 5% of total car sales. Buyers are mainly business individuals, company employees, farmers, etc., with small-scale transportation and business needs.
Pickup Truck Tax Policies: A Comparison of Vietnam and ASEAN Countries
Currently, double-cab pickup trucks in Vietnam are subject to a special consumption tax of 15% to 25%, depending on engine displacement, which is higher than in many ASEAN countries such as Malaysia, Philippines, and Thailand.
A map highlighting the ASEAN countries and their pickup truck tax rates.
For example, Thailand, a country with a strong automotive industry, applies a special consumption tax of only 12% to double-cab pickup trucks. The Thai government encourages the use of pickup trucks as a driver of economic growth.
Proposed Increase in Pickup Truck Tax: Issues to Consider
The proposal to increase the special consumption tax on double-cab pickup trucks in Vietnam to a level equivalent to 60% of the tax rate for passenger cars with the same engine displacement is causing much debate.
A graph comparing potential tax increases on pickup trucks in Vietnam.
Many experts argue that this tax increase may not achieve the goals of regulating traffic, reducing accidents, and increasing budget revenue, but will negatively impact consumers, businesses, and the economy. Thorough and comprehensive assessments are needed before making a decision.
Conclusion
Tax policies for double-cab pickup trucks need to be considered carefully, based on actual usage, the socio-economic characteristics of Vietnam, and the experiences of countries in the region. Balancing the goals of increasing budget revenue and supporting economic development, while ensuring consumer rights, is essential.
