Crackdown on tax-exempt number plates for foreigners

Cars owned by expatriates are allowed special tax exemption number plates will be subject to new inspections by the Department of Transport (DOT).

The inspections target cars with number plates beginning with the letters VN, RG and KT.

The problem was that some cars were sold along with the tax exempt number plates and the new owners who continued to pay no tax, said Tran Son, Senior Lieutenant Colonel of the Road and Railway Management Department.

Under the current regulations, cars imported to the country are subject to four different types of tax: import, special consumption, value added and registered taxes.

Number plates with NN are import tax free. Cars with number plates beginning with NG are for people working in diplomatic agencies and international organisations. They only have to pay registration tax.

As part of the inspection process, officers will suggest necessary ways to recollect taxes from car owners who have violated the law, and build specific regulations to better manage cars with foreign number plates, Son said.

This was necessary because there were currently no regulations to punish violators in cases where the original owners had gone back to their home countries, he said.

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