Year-on-year, automotive imports fell by 11.2% in volume to 49,000 units and 21.2% in value to US$1.184 billion.
The GSO attributes the decline to an increase in the purchase price of vehicles since the beginning of this year due to the Government's adjustment of a special consumption tax on imported vehicles – including all vehicles driven by engines such as cars, pickups, SUVs and buses.
Under the new tax calculation, which went into effect January 1, 2016, the special consumption tax for imported vehicles with 24 seats and below is based on the importer's price.
However, the price cannot be lower than 105% of the cost of the vehicle, which includes its import price, import tax and special consumption tax at the importing point. If it is lower than this level, the tax is fixed by tax regulations.
The new calculation method has been estimated to have caused the cost of an imported vehicle to have increased by five percent.
