1. HANOI FOREIGN TRADE UNIVERSITY

2. 3 main points
1. How to calculate the after-tax car price.
2. The reasons why the GOV sets the tax high.
3. Forcast the car impost in few years after.

3. 1. Calculate the after-tax car price
Excise
tax
Impost
VAT
Taxable price
+ Tax total = The after-tax price

4. 1. Calculate the after-tax car price
• 1.1 Impost
Impost = (Taxable price) x (Impost rate)
Impost rate : based on the cylinder capacity
•83%
Less than
2500 cc
Need fosusing!
•80%
2500 cc or
more

5. 1. Calculate the after-tax car price
• 1.2 Excise tax ( the special consumption tax )
Excise tax = (Taxable price + Impost) x Excise tax rate
Excise tax rate : based on the cylinder capacity too.
•45% •50% •60%
Less than
2000 cc
Need fosusing!
From 2000
to 3000 cc
More than
3000 cc

6. 1. Calculate the after-tax car price
• 1.3 VAT
VAT = (Taxable price + Impost + Excise tax) x 10%
VAT rate is fixed at 10% for every kinds of goods.
Need fosusing!

7. Example

8. Example

9. Toyota Camry 3.5 LE 2009
Price in America: $20.000

10. Toyota Camry 3.5 LE 2009
Impost
rate
Excise tax
rate
VAT

11. 1. Calculate the after-tax car price
TAX TOTAL
EXAMPLE
Impost = $20.000 x 80% = $16.000
+
Excise tax = ($20.000 + $16.000) x 60% = $21.600
+
VAT = ($20.000 + $16.000 + $21.600) x 10% = $5.760
$ 43.360

12. 1. Calculate the after-tax car price
EXAMPLE
The after-tax price:
$ 20.000
+
$ 43.360
:-ss
$63.360 / $20.000 =
3.168
=
$ 63.360

13. 2. The reasons why the GOV sets the tax high

14. 2. The reasons why the GOV sets the tax high
Protect the domestic
automobile production
Transport infrastructure
Increase the
government’s revenues

15. 2. The reasons why the GOV sets the tax high
Protect the domestic
automobile production
Transport infrastructure
Increase the
government revenues

16. 2. The reasons why the GOV sets the tax high
Protect the domestic
automobile production
Transport infrastructure
Increase the
government revenues

17. 2. The reasons why the GOV sets the tax high
Protect the domestic
automobile production
Transport infrastructure
Increase the
government’s revenues

18. 3. Forcast the impost rate a few years after
Impost rate
90
80
70
60
50
40
30
20
10
0
Impost rate
2012
2014
2017
- In 2018, the impost rate will be 0%
But just inside ASEAN
:D

19. 1. Calculate the after-tax car price
Excise
tax
Impost
VAT
Taxable price +
Tax total = The after-tax price

20. 2. The reasons why the GOV sets the tax high
Protect the domestic
automobile production
Transport infrastructure
Increase the
government revenues

21. 3. Forcast the impost rate a few years after
Impost rate
90
80
70
60
50
40
30
20
10
0
Impost rate
2012
2014
2017
- In 2018, the impost rate will be 0%
But just inside ASEAN