Alcohol and beer could be subject to 100 per cent special consumption tax

In a message sent to the government about the draft revised SCT Law, the MoF proposed levying taxes on all alcoholic beverages, alcoholic fermented fruit, grain-based beverages, and drinks made from food alcohol.

Vietnam currently applies an excise tax on alcohol of 35–65 per cent and beer of 65 per cent. The MoF has proposed adjusting these rates following a roadmap from 2026 to 2030. The retail price will increase by 10 per cent according to recommendations made by the WHO.

According to the country's beer, alcohol, and beverage industry development plan, Vietnam will reach a production output of 4.6 billion litres of beer by 2025, 350 million litres of alcohol, and 9.1 billion litres of soft drinks. The industry will achieve an export turnover of $600 million.

MoF said that alcohol and beer consumption, if abused, causes harmful effects on consumer health, affecting security, order, and traffic safety. Alcoholic beverages are addictive, easily leading to abuse.

It is essential to levy a higher tax to raise awareness and action about the harms of excessive alcohol and wine consumption. The move is aimed at reducing consumption and abuse of these products.

Many companies have asked the government to delay the amendment due to concerns about the economic damage it could cause the industry and the state budget. The beer industry saw an 11 per cent decline in revenue and a 23 per cent slump in profits last year, according to the Vietnam Beer-Alcohol-Beverage Association estimation.

According to businesses, increasing taxes will lead to price adjustments, which is not an effective tool to help change consumption habits. Instead, the government needs to have policies to encourage businesses to adopt innovative technology, create suitable products, and bring benefits to users and the economy.

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