HCMC – A proposed amendment to tax sugar-sweetened beverages has ignited a heated debate in the National Assembly, with lawmakers raising concerns about its potential impact on farmers, policy clarity, and its effectiveness in addressing public health issues.
The tax proposal, introduced by Deputy Prime Minister Le Thanh Long during an NA session on November 22, aims to expand the tax base and reduce the consumption of sugary drinks, which have been linked to health problems such as obesity and diabetes. The tax would apply to beverages containing more than 5g of sugar per 100ml.
However, lawmakers expressed reservations about the policy’s ambiguity and possible repercussions. Nguyen Truc Son, a deputy from Ben Tre Province, a major coconut producer, voiced concerns about the impact on coconut farmers and related businesses.
“The tax should clearly define what kinds of drinks it applies to,” Son said. “Does it include fruit and vegetable juices, or only carbonated soft drinks? This ambiguity is causing great concern among businesses.”
Son also highlighted the potential damage to Ben Tre’s coconut industry, which generates approximately US$500 million in annual export revenue. He suggested the regulations specify tax rates for varying sugar levels instead of imposing a blanket tax.
Deputy Dang Bich Ngoc from Hoa Binh Province supported the tax’s goal of improving public health but stressed the need for a thorough assessment of its impact on businesses. She called for a clear definition of sugar content and a phased implementation to allow businesses time to adapt.
Adding to the discussion, NA Vice Chairwoman Nguyen Thi Thanh questioned the scientific evidence directly linking sugary drinks to obesity. She proposed a gradual approach to allow consumers and businesses time to adjust.
The debate underscores the challenges of introducing public health policies while balancing economic considerations and ensuring clarity for stakeholders. The NA is continuing deliberations on the proposal, seeking a solution that effectively addresses health concerns while minimizing unintended consequences.
