Domestic automakers are set to enjoy an SCT payment until the end of this year.

The Government agreed to delay deadline payment for SCT in October to December 20, 2021 and in November to December 30 in a bid to support businesses to overcome pandemic hardship.

The decree, set to come into effect on December 4, also covers car branches and dealers under the management of local automakers. It also stipulated that the extension would cease to be valid once the deadline expired.

To be entitled to the extension, local automotive firms will have to submit online or written applications for extensions to tax agencies when making excise tax declarations, in line with current regulations.

Under a proposal of the Ministry of Finance, rescheduling SCT for local automobile manufactures and assemblers is at the value of VND 4.4 trillion (US$191 million).

The Ministry of Foreign Affairs agreed that it is essential to support businesses in overcoming the difficulties caused by tge COVID-19 pandemic. By doing so, local automobile manufacturers and assemblers, as well as automobile joint-venture makers and assemblers in Viet Nam, will benefit from the decree. This will allow them to gather more capital to maintain and expand their production.

The Viet Nam Chamber of Commerce and Industry (VCCI) has also come to a consensus on the extension policy to support businesses, as proposed by the Ministry of Finance. Local automobile assemblers and manufacturers have played an important role in the country’s economic development, evidenced by their great contributions to the State budget through the collection of all kinds of taxes and fees, as well as creating jobs.

Earlier, registration fee for domestically- produced or assembled cars has been reduced by half from December 1, 2021 to May 31, 2022 under the Government’s Decree No. 103/2021/ND-CP, dated November 26, 2021. The move is part of the Government’s effort to stimulate car sales and support the local automobile industry amid the COVID-19 pandemic, and the second round of fee reduction in the past two years.

Last year, the Government issued Decree No.109/2020/ND-CP on the deferral of excise tax payment on the payable amount incurred in the tax periods of March to October 2020 for domestic car manufacturers or assemblers.

Under the MoF’s calculation, deferring excise tax payment would help improve enterprises’ working capital and maintain businesses activities, while promoting the development of the local automobile industry./.