Vietnamese motorcycle assemblers ordered to pay back taxes
HANOI - Fifty-one domestic motorcycle-makers that falsely
declared high levels of local parts in their products to avoid import duties
must pay the government 720 billion dong (US$72 million) in back taxes, an
official said Thursday.
The General Department of Taxation found that 51 out of the 55 domestic
motorbike assemblers falsified their local content levels to take advantage of
tax benefits in 2001, a department official said.
Vietnam's seven foreign-invested motorcycle assemblers were not targeted
in the tax probe, the official said.
The 51 local motorcycle-makers owe taxes ranging from 200 million dong
(US$13,000) to 80 billion dong (US$5.23 million), she said.
"We will get tough on those who refuse to pay, including a suspension of
their parts imports,'' said the official, who spoke on condition of anonymity.
The Vietnam Motorbike Manufacturers Association protested the
government's decision, calling it unilateral and unfair.
The association said the government and the assemblers have different
understandings of how to calculate local content.
The tax department says only parts made in Vietnam can be categorized as
local, while the assemblers say any parts purchased in Vietnam should be
included.
The tax crackdown comes as Vietnam's motorbike industry remains in
turmoil over a government decision in September to lower the ceiling on
imported motorbike parts kits to 1.5 million this year from 2.5 million last
year.
The decision has forced Honda Vietnam and Yamaha Vietnam to halt
production.
Vietnam has 10 million motorbikes for its 80 million people, one of the
highest per capita levels in the world.
The Associated Press - October 24, 2002.
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