Tomorrow (March 10), as scheduled, the National Assembly Standing Committee will give its opinion on the explanation, acceptance, and revision of the draft: Law on Special Consumption Tax (amended) and Law on Corporate Income Tax (amended).
This draft law was commented on by the National Assembly at the 8th session in November 2024, with many different opinions surrounding the options for a roadmap to increase special consumption tax (SCT) on alcohol, beer, tobacco, etc.
The draft Law on Special Consumption Tax adjusts the tax rate on alcohol and beer products to increase to 100% for 5 consecutive years and adds sugary soft drinks to the list of subjects subject to special consumption tax.
Accordingly, the draft proposes two options for adjusting annual tax rates for alcohol and beer, starting from 2026. In which, option 1 will increase by 5% in the first year and by 90% each year.
Option 2 is to increase by 15% in the first year and increase by 5% each year, by 2030.
Before the 43rd session of the National Assembly Standing Committee gave opinions, many agencies and units recently sent documents giving comments on the Law on Special Consumption Tax (amended) to the National Assembly's Economic and Financial Committee.
In a document sent to the National Assembly's Economic and Financial Committee, the Vietnam Tax Consulting Association (VTCA) supported the amendment of the Law on Special Consumption Tax, but was concerned that the continuous and rapid increase would affect businesses.
The tax increase means an increase in selling prices, but the demand for alcohol use according to Vietnamese customs still occurs, so this unit believes that a part of consumers will switch to using smuggled alcohol and beer, which are not of good quality.
The Vietnam Tax Consulting Association recommends that if the tax rate adjustment roadmap cannot be extended, we should choose option 1 that the draft law proposes, which is to increase the tax rate by 5% each year, and by 2030, the tax rate will be 90% for alcohol and beer.
In the document sent to the National Assembly's Economic and Financial Committee, the Vietnam Federation of Commerce and Industry (VCCI) said that in the current challenging economic context, the adjustment of tax policies, including special consumption tax, needs to be carefully and comprehensively considered.
According to VCCI, the business community hopes that tax policies, including special consumption tax, will be carefully considered to create more favorable conditions for investment, production, business, support consumption stimulation and market expansion.
Tax policy design needs to ensure feasibility, suitability with reality, and at the same time contribute to promoting harmonious and sustainable socio-economic development.
VCCI also recommended that the National Assembly consider amending the Law on Special Consumption Tax in the direction of regulating it in a framework and long-term stable manner. It only sets out the principle of adjusting the maximum tax rate or narrowing or expanding taxable subjects; at the same time, assigning the Government to proactively develop a roadmap for adjustment
Economic expert, Associate Professor, Dr. Ngo Tri Long, said that the principle of taxation is to ensure balance and harmony of interests between the State and taxpayers. This important principle ensures revenue for the state budget, but does not let taxpayers fall into a miserable situation.
"Implementing this principle, the State will not create tax increase shocks for businesses, society, and workers. If the total tax payable is too large, the lives of working people will not be guaranteed; the economy will stagnate indirectly; the risk of tax evasion is very potential" - Associate Professor, Dr. Ngo Tri Long warned.
