On November 22, continuing the 8th Session, the National Assembly listened to the presentation and review report of the revised Law on Special Consumption Tax (SCT).
In the draft Law on Special Consumption Tax (amended), soft drinks according to Vietnamese Standards (TCVN) with sugar content over 5g/100ml are added to the list of subjects subject to special consumption tax, with a tax rate of 10%.
Presenting the review report, Chairman of the National Assembly's Finance and Budget Committee Le Quang Manh said that the majority of opinions agreed with this proposal of the Government.
However, some opinions say that the main goal of the proposal to add sugary drinks to the taxable list is to regulate and guide production and consumption behavior for this product, contributing to protecting people's health.
The tax rate of 10% is quite low and may not be enough to impact and change people's consumption habits, leading to failure to achieve the goals set in the policy.
Therefore, it is necessary to consider proposing higher tax rates to achieve the goal of regulating consumption and protecting people's health.
However, some opinions also suggested a clearer explanation of the ability to achieve the goal of this policy in contributing to protecting people's health. Because sugary soft drinks are not the main and only cause of overweight and obesity.
Adding sugary drinks to the list of special consumption tax not only has an adverse impact on the production and business activities of beverage manufacturing enterprises but can also affect supporting industries.
At the same time, there may be an increase in the use of informally produced beverage items or artisanal products.
On amending and supplementing the description and tax rates of special consumption tax on cars using environmentally friendly energy, amending the tax rate on double-cabin pickup trucks.
The Chairman of the Finance and Budget Committee said that the majority of opinions agreed with the proposal to regulate lower tax rates for vehicles using environmentally friendly energy to reduce greenhouse gas emissions, in line with international trends.
There is also a proposal that the tax rate for gasoline-electric hybrid vehicles without a separate charging system (HEV) is 70% of that for gasoline- or diesel-powered vehicles of the same type; and gasoline- or electric hybrid vehicles with a separate charging system (PHEV) is 50% of that for gasoline- or diesel-powered vehicles of the same type.
Regarding the tax rate for double-cabin pickup trucks, Mr. Le Quang Manh said that the majority of opinions believe that raising the tax rate as proposed by the Government is appropriate to regulate and limit the use of means of transport, contributing to ensuring the use of cars that can both transport people and goods in accordance with the vehicle design goals, avoiding taking advantage of policies and ensuring the consistency of the legal system.
Some opinions say that double-cabin cargo pickup trucks are essentially trucks, with the main function of transporting goods, serving small and medium-sized businesses, convenient and simple in transporting goods. Therefore, it is proposed to maintain the special consumption tax rate according to the current Law.
In case of tax increase, it is necessary to make a specific assessment to avoid affecting production, business and investment attraction, at the same time, adjust the tax increase rate appropriately (the plan submitted by the Government is for the special consumption tax rate to increase twice compared to current regulations) and there needs to be a suitable roadmap.
