VIR conference on Special Consumption Tax Law attracts thousands

The conference started at 8:30 am today and is being live-streamed on VIR's websites and social media platforms

VIR conference on Special Consumption Tax Law attracts thousands

The conference aims to gather opinions and help drafting agencies to ensure a multidimensional perspective to the amended Special Consumption Tax Law, which is being drafted by the Ministry of Finance and is expected to be debated at the National Assembly’s eighth session in October-November 2024 and approved in May 2025.

Le Trong Minh, VIR’s editor-in-chief, said, “The amended Special Consumption Tax Law has received the support and appreciation of both experts and businesses. However, there are still differing opinions relating to specific problems, namely the tax level and the timeline for tax application on alcohol, as well as the imposition of a special consumption tax on barley drinks.”

“The discussion will address three main areas. It will identify the viewpoints, goals, and orientations of state management agencies regarding the amendments to the Special Consumption Tax Law for the alcoholic beverage industry in Vietnam. The experts will also quantify the impact of proposed scenarios for tax amendments on the alcoholic beverage industry. From there, they will compare the pros and cons of these proposed scenarios and the level of response to the state management goals set by the amended law,” Minh said.

From the empirical research results, experts and representatives of businesses in the industry will recommend proposals to enhance the effectiveness and efficiency of the amended law.

The new draft law proposes two options to increase the tax for alcoholic beverages. The first option would see the tax rate raised by over 5 per cent by 2026 with prices potentially increasing by 10 per cent compared to 2025. The second option would see the tax rate raised by over 15 per cent by 2026 with prices expected to increase by 20 per cent compared to 2025.

For the beverage industry, businesses in the chain of production and consumption of goods and services would be directly affected by the proposed adjustments to the law, with a proposal to increase tax rates every year until 2030 for wine and beer.

In addition, the draft proposes that beverages with sugar content above 5g/100ml be subject to a special consumption tax.

MoF proposes a 10 per cent special consumption tax on sugary drinks The Ministry of Finance (MoF) has maintained its view that sugary drinks should be subject to a special consumption tax (SCT) of 10 per cent in a message sent to the government regarding the draft revised SCT Law.

Feedback welcomed for upcoming tax law changes Next year and the following year, there are important amended tax laws coming into effect on the VAT, corporate income tax (CIT) and special sales tax (SST), which are of concern to the businesses and those affected.

Conflicts apparent regarding proposed consumption tax Beverage industry leaders continue to put across their views on the potential increase in special consumption tax on various beverages.

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