HCMC – The National Assembly has passed a revised Law on Special Consumption Tax, which will affect sugary beverages and air conditioners of between 24,000 and 90,000 BTU.
At a plenary session this morning, June 14, the National Assembly passed the revised Law on Special Consumption Tax with 448 out of 454 lawmakers voting in favor, representing an approval rate of 93.72%, according to the Vietnam News Agency.
The revised law, which will take effect on January 1, 2026, defines taxable and non-taxable goods and services, taxpayers, tax bases, and provisions for tax refunds, deductions and reductions.
Air conditioners below 24,000 BTU or above 90,000 BTU will be exempt from the tax.
Sugary drinks containing more than 5 grams of sugar per 100 milliliters will be taxed at 8% beginning January 1, 2027, with the rate rising to 10% in 2028. Exemptions apply to products such as milk and dairy items, natural mineral water, bottled water, pure vegetable and fruit juices, nectar, cocoa-based drinks, coconut water, and nutritional liquids.
Phan Van Mai, chairman of the National Assembly’s Economic and Financial Committee, said taxing sugary beverages aligns with global practices and aims to promote healthier consumer choices.
While some lawmakers proposed extending the tax to artificially sweetened beverages, the NA Standing Committee said further study is needed to assess the potential impact on production and business recovery.
Special consumption tax rates on alcohol and beer will also increase gradually from 2026. Alcohol over 20% ABV and beer will be taxed at 65% in 2026, with a 5% annual increase reaching 90% by 2031. Alcohol under 20% ABV will start at 35% in 2026 and climb to 60% by 2031.
Proposals to tax additional categories—such as other sugar-based products, plastic bags, online gaming, online betting, and beauty services—were not included due to a lack of comprehensive impact assessment.
The committee also reaffirmed the need to maintain the current tax on gasoline, while recommending a review to align with environmental protection tax and Vietnam’s climate commitments under COP26.
Some exemptions are added to the law, including helicopters, gliders, and aircraft used for emergency services or agricultural production. The wording of pesticide-related equipment was broadened to include all agricultural applications.
