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Tuesday, July 23, 2024

Ministry proposes steeper excise tax on tobacco, alcohol

The Saigon Times

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HCMC – The Ministry of Finance has proposed slapping higher excise tax on unhealthy products such as cigarettes, beers and alcoholic beverages, and adding sugary drinks to the list as well.

The ministry is seeking feedback on the proposal to work out the revised law on excise tax to stimulate people to use eco-friendly products and limit the consumption of unhealthy products.

Despite the increase in excise tax, the smoking rate has remained high, with 42.3% of Vietnamese men smoking in 2020. Alcoholic consumption has also been on the rise in recent years, the ministry explained.

Additionally, it cited data from the World Health Organization that sugary drinks are the main cause of obesity, heart disease, diabetes and other diseases. The number of overweight Vietnamese adults (over 18 years) increased by 68% between 2002 and 2016.

Therefore, the ministry proposed increasing excise tax on those unhealthy products and including sugary drinks in the list of products under this tax.

Sugary drinks are subject to excise tax in 50 countries worldwide, with six in Southeast Asia, according to statistics in 2021.

Additionally, the ministry proposed reducing excise tax on environmentally friendly products such as hybrid vehicles powered by both gasoline and electricity, electric vehicles, and natural gas vehicles.

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