On June 14, 2025, the National Assembly passed the Law on Special Consumption Tax (amended), which stipulates the application of a 10% tax rate on air conditioners with a named refrigeration capacity of over 24,000 to 90,000 BTU. The law takes effect from January 1, 2026.
Deputy Minister of Finance Cao Anh Tuan said that the demand for air conditioners is increasing, although using new technology, it still affects the environment, and there is not much saving electricity.
He cited that some countries still impose special consumption tax on this item, many countries have regulations requiring a license when installing air conditioners, limiting temperature, and checking electricity-saving operation capabilities.
Mr. Tuan said: "Consumption of special consumption tax with the above type of air conditioning is to orient energy-saving consumption and environmental protection".
Selective scope of application
This regulation does not apply to air conditioners with less or larger capacity than the above threshold. Accordingly:
Equipment with a capacity of 24,000 BTU or less - the most common group among households - is not subject to tax.
Equipment over 90,000 BTUs typically used in industry, factories, and cold storage are also exempt from tax, due to technical characteristics and specialized range of use.
Air conditioners installed on means of transport (cars, boats, airplanes) - specifically designed - are not subject to tax, regardless of the capacity.
Notably, in cases of import and production of separate parts such as separate hot and cold compartments but fully capable of operating as a complete air conditioner, special consumption tax is still applied according to detailed instructions of the tax authority.
Policy proposal basis
According to the report, air conditioners are a large consumer of electricity, especially in urban areas and areas with high urbanization rates. Some air conditioners today use refrigerants such as HCFC and HFC substances with a high global warming index (GDP), causing greenhouse gas emissions, affecting climate change.
Vietnam is a member of the Montreal Protocol and has issued a control roadmap, moving towards gradually eliminating harmful refrigerants. This tax policy is considered a supplementary economic tool, supporting energy conversion goals, improving resource efficiency and environmental protection.
Tax rate and preparation time
The special consumption tax rate applied is 10% of the selling price, calculated according to the provisions of the Law on Special Consumption Tax. The Law also stipulates the effective date from January 1, 2026, in order to create conditions for businesses and consumers to have time to prepare and adjust their product portfolio, import and consumption structure accordingly.
Relevant agencies such as the Ministry of Finance and the Ministry of Industry and Trade will coordinate to issue detailed instructions on product codes, capacity standards and how to determine tax calculation prices in the coming time.
Market impact and consumer orientation
With a selective scope of application, the policy is expected to not affect common consumers, while promoting the market to shift to high-performance product lines with better environmental standards.
In the context of increased electricity consumption in the hot season, using energy-saving devices not only reduces costs for users but also contributes to reducing pressure on the national grid.
