The Government has just issued Decree No. 36 on extending the deadline for paying special consumption tax on domestically produced or assembled cars. Enterprises still propose that the Government soon consider deciding on a plan to reduce registration fees by 50%.

The Decree clearly states that the deadline for paying special consumption tax arising from the tax calculation period of June, July, August and September is extended for: car domestically produced or assembled.

The extension period is calculated from the end of the deadline for payment of special consumption tax as prescribed by law until November 20, 2023. This Decree takes effect from the date of signing and promulgation until December 31, 2023.

The Decree also stipulates that if car business If the additional declaration is submitted to the tax authority before the end of the extended period, the extended tax amount will include the increased tax payable.

If a business has branches or affiliated units that declare special consumption tax separately with the direct tax authority, they will also be eligible for an extension.

However, branches and affiliated units of enterprises that do not have automobile manufacturing or assembly activities will not be eligible for an extension of special consumption tax payment.

According to regulations, tax-paying enterprises eligible for an extension must submit a request for payment of special consumption tax to the tax authority directly managing them. The request for an extension will be applied once for all extended periods.

With this decree, tax authorities do not have to notify taxpayers about accepting the extension of the deadline for paying special consumption tax.

In case during the extension period, for enterprises that are not eligible for extension, the tax authority shall issue a written notice to the taxpayer about the termination of the extension.

Taxpayers must pay the full amount of tax and late payment within the extended period to the state budget.

In case after the extension period expires, the tax authority discovers through inspection and examination that the taxpayer is not eligible for an extension, the taxpayer must pay the outstanding tax amount, fines and late payment fees re-determined by the tax authority to the state budget.

As previously reported by the Ministry of Finance, with the above tax payment extension plan, the estimated average monthly special consumption tax on domestically produced and assembled automobiles arising in the following months of 2023 is about VND 2,600 - 2,800 billion/month.

Accordingly, the total special consumption tax on domestically produced and assembled cars that will be deferred under the proposed plan is about VND10,400 - 11,200 billion.

Talk to Tuoi Tre Online , representatives of several domestic car manufacturers said that in the context of domestic car manufacturing and assembly enterprises facing difficulties due to a significant decrease in car consumption, continued support for enterprises will help the domestic car manufacturing and assembly industry recover and develop business.

With the extended source of money and tax payment deferral, automobile manufacturing and assembly enterprises will have more room to introduce policies to stimulate consumption and reduce prices to support car buyers.

However, along with this policy, businesses recommend that the Government should soon consider deciding on a plan to reduce 50% of registration fees for cars to reduce car prices and stimulate consumption during the year-end shopping season.