Pickup trucks are becoming a popular choice in Vietnam due to their versatility and powerful performance. However, according to the latest proposal from the Ministry of Industry and Trade, taxes and fees applied to this vehicle segment could increase significantly, potentially raising pickup truck prices by hundreds of millions of Vietnamese Dong. This will have a considerable impact on the overall automotive market and consumers.
Pickup Truck Price Increase: Old vs. New Price Comparison
If the proposal is approved, pickup truck prices are expected to surge. Below is a comparison table of the anticipated prices for some popular pickup truck models in Vietnam:
| Model | Old Price (million VND) | New Price (million VND) | Increase (million VND) |
|---|---|---|---|
| Mitsubishi Triton | 596 – 785 | 1,038 – 1,367 | 463 – 590 |
| Ford Ranger | 634 – 918 | 1,104 – 1,863 | 470 – 945 |
| Isuzu D-Max | 660 – 790 | 1,149 – 1,362 | 489 – 572 |
| Mazda BT-50 | 645 – 829 | 1,123 – 1,682 | 478 – 853 |
| Chevrolet Colorado | 619 – 839 | 1,078 – 1,447 | 459 – 608 |
| Nissan Navara | 625 – 795 | 1,088 – 1,385 | 463 – 590 |
Reasons for Pickup Truck Tax Increase
This proposal is based on the view that 5-seater pickup trucks with a payload capacity of under 1,500kg (the majority of pickup trucks in Vietnam) are considered passenger cars when participating in traffic. Therefore, the applicable taxes and fees should be equivalent to passenger cars with fewer than 9 seats. Currently, pickup trucks benefit from preferential import tax, special consumption tax, and registration fee rates.
Comparison of Current and Proposed Taxes and Fees
| Current Taxes and Fees | Engine Displacement | Import Tax | Special Consumption Tax | Registration Fee |
|---|---|---|---|---|
| Under 2.5 liters | 5% | 15% | 2% | |
| 2.5 – 3.0 liters | 5% | 20% | 2% | |
| Over 3.0 liters | 5% | 25% | 2% | |
| Proposed Taxes and Fees | Under 1.5 liters | 30% | 40% | 10% |
| 1.5 – 2.0 liters | 30% | 45% | 10% | |
| 2.0 – 2.5 liters | 30% | 50% | 10% | |
| 2.5 – 3.0 liters | 30% | 55% | 10% | |
| 3.0 – 4.0 liters | 30% | 90% | 10% | |
| 4.0 – 5.0 liters | 30% | 110% | 10% |
Impact of Tax Increase on the Market
The increase in pickup truck taxes will lead to a sharp rise in vehicle prices, potentially doubling the current rates. Many models will exceed VND 1 billion in price, and even high-end versions of the Ford Ranger could reach nearly VND 2 billion. At these price points, the competitiveness of pickup trucks against passenger cars will significantly decrease.
Objectives of Pickup Truck Tax Increase
According to experts, the increase in pickup truck taxes aims to boost government revenue, curb the rapid growth of pickup truck sales, and protect domestically assembled vehicles. Furthermore, the Ministry of Industry and Trade has also proposed exempting the special consumption tax on the domestically created value of a car model. This would make imported cars more expensive compared to domestically assembled vehicles.
Conclusion
The increase in pickup truck taxes will have a strong impact on the automotive market. Consumers should carefully consider their options before deciding to purchase a vehicle. Whether this proposal will be approved and its actual impact on the market remains to be seen and monitored.
