Recently, the Ministry of Finance submitted a proposal to the Government to consider not reducing the registration fee collection rate (LPTB) due to concerns about violating international commitments, leading to the risk of sanctions or retaliation from countries in which Vietnam Nam exports goods to Vietnam. Therefore, it is necessary to develop a plan to proactively respond.
This opinion comes from the agencies simultaneously requesting the Ministry of Finance to consider Vietnam's international commitments.
As proposed by the Ministry of Justice, carefully review Vietnam's commitments in international treaties to which Vietnam is a member, thereby coordinating with the Ministry of Industry and Trade and the Ministry of Foreign Affairs to develop detailed plans to response (in case the Government issues a Decree), report to the Government for consideration and decision.
The Ministry of Justice also requested the Ministry of Finance to fully assess the impact, review the subjects of LPTB reduction, and propose subjects to reduce the LPTB to suit the practical situation, ensuring the correct goals and viewpoints in developing the Decree. , ensuring legality, consistency, and compliance with the Law on Promulgation of Legal Documents.
The Ministry of Planning and Investment believes that, according to the report of the Ministry of Finance, it can be confirmed that Vietnam is violating international commitments on goods that the Government has made in the process of international economic integration by continuing to Implement the extension of the LPTB reduction policy for domestically produced and assembled cars.
"Continuing to reduce the LPTB revenue by 50% leads to the risk of being fined for violating international commitments" - the Ministry of Planning and Investment stated.
Assessing that the Ministry of Finance's development of a draft Decree of the Government, the Ministry of Industry and Trade said this is in accordance with the policies and directions of the Prime Minister. However, according to the provisions of the Agreement on Rules and Procedures for Dispute Resolution in the WTO (DS), in the case of Vietnam being sued and found to be in violation of WTO regulations due to promulgating policies on tax rates, LPTB for domestically produced and assembled cars, Vietnam must immediately stop violating measures according to the conclusions and recommendations of the dispute settlement body (DSB) in the WTO.
In case of failure to follow the conclusions and recommendations within a reasonable period of time, Vietnam may have to pay compensation or face retaliation from other countries for Vietnamese goods exported to other countries. .
"The Ministry of Industry and Trade supports solutions to remove difficulties and obstacles for businesses in general and domestic automobile manufacturing and assembling businesses in particular. In the case of continuing to apply this policy in 2024 , Vietnam needs to have appropriate diplomatic measures to avoid affecting its reputation with trading partners, leading to the possibility of lawsuits or retaliation as stated" - Ministry of Industry and Trade clarified.
In an express dispatch from the Ministry of Foreign Affairs to the Ministry of Finance, the Ministry's representative said he would actively coordinate with relevant ministries and branches to monitor and prepare appropriate handling plans.
