HCMC – The Ministry of Finance (MoF) has proposed two options for hiking the special consumption tax on beer and alcoholic beverages, as outlined in the latest draft of the Law on Special Consumption Tax.
During a seminar held on August 8 in Hanoi, organized by the Vietnam Chamber of Commerce and Industry (VCCI) and the Vietnam Beer-Alcohol-Beverage Association (VBA), the MoF proposed its tax hike options.
The first option is that tax rates in 2026 will be increased by five percentage points over the current rates, leading to a 10% rise in product prices compared to 2025 levels.
The second option proposes a more substantial increase, with tax rates in 2026 being 15 percentage points higher than the current rates, resulting in a 20% price spike from the previous year.
In both scenarios, the MoF has recommended an annual tax rate increase of five points over the next four years. This could cause product prices to rise by 2% to 3% annually compared to the preceding year.
By 2030, the special consumption tax on beer and alcoholic beverages with alcohol content over 20% could rise to between 90% and 100%, while beverages with alcohol content under 20% could face a tax rate of 60% to 70%.
During the seminar, a representative from VBA emphasized the need for a thorough review of the proposed tax changes. They stressed that the policy should be carefully considered to ensure it benefits all stakeholders, taking into account Vietnam’s current economic situation.
The existing law subjects eleven products to the special consumption tax, including cigarettes and cigars, all types of alcohol, beer, cars with fewer than 24 seats, gasoline, and gasoline additives.
