Honda
Vietnam will reconsider its investment and business plans in Vietnam if it is
hit by a multi-million dollar tax arrears bill.
The manufacturer stated in a document sent to the government opposing the decisions, from custom departments in Hanoi and Vinh Phuc province, for collecting $160 million in tax arrears payments.
The custom departments said Honda Vietnam had
to pay tax arrears because its automobile imported part breakdown levels did
not conform with existing legal regulations, in Decision 05 issued by the
Ministry of Science and Technology.
The parts failing to meet regulations under
the Decision 05 include two-piece exhaust pipes, door and window glass, seats’
completely-installed buffers and frames. Meanwhile, Honda Vietnam said tax
arrears issue had appeared due to custom departments’ misunderstanding of
imported tax regulations.
Honda Vietnam is the first foreign auto maker
to announce it is reconsidering investment and business plans in Vietnam due to
tax arrears issues. At present, scores of other auto makers in Vietnam have
also been either hit by tax arrears payment bills or listed as enterprises
forced to pay tax arrears like Honda Vietnam.
According to the Ministry of Finance, these
firms include many automobile joint ventures like Ford Vietnam, Toyota Motor
Vietnam and Vietnam-GM Daewoo Company.
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