Tax Agencies to Adjust Car, Bike Prices

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Jan. 11 – Local tax agencies will now be allowed to adjust retail prices of cars and motorbikes should they be deemed lower than actual value following a newly drafted decree.

Manufacturers and distributors of vehicles will be fined should they be be caught under-invoicing to evade taxes. Tax agencies will base prices on information given by customs agencies, the Vietnam Automobile Manufacturers’ Association and local media, as well as previous tax and profit figures of the businesses reports Thanh Nien News.

The General Customs Department set higher minimum taxable prices for more than 600 imported car models last year after reports that local importers were evading taxes. There is pent up demand for cars in Vietnam with sales increasing by seven percent in 2009 to 119,460 vehicles.