According to the decree, the extension of the SCT payment deadline applies to amounts arising in the May, June, July, August, and September 2024 tax periods for automobiles manufactured or assembled in Vietnam. SCT payments have been extended to November 20 this year at the latest.

This decree takes effect from June 17, and is the sixth time the SCT on domestically manufactured and assembled cars has been extended to support businesses.

Last year, this policy was also applied to facilitate domestic enterprises, with a tax-deferred payment of up to VND8.1 trillion ($318 million). The SCT amount extended in the first three months of this year reached VND5.2 trillion ($204 million).

According to the Ministry of Finance (MoF), the total amount of delayed SCT payments on cars manufactured and assembled in Vietnam will reach VND8.56 trillion ($336 million) this year.

The MoF predicts the vehicle market and the economy will continue to face persistent headwinds amid an economic crisis and geopolitical conflict. In particular, vehicle manufacturing and assembly have encountered a downward trend, causing a slump in both sales and volume.

The ministry believes that the latest deadline will not affect this year's state budget revenue. After the extension period, the SCT for domestically manufactured and assembled cars will be paid according to current regulations.