On the morning of June 4, the National Assembly Standing Committee gave its opinion on the reception, explanation, and revision of the draft Law on Special Consumption Tax (SCT) amendment.
Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai said that there are opinions suggesting regulating air conditioners above 24,000 BTU to 90,000 BTU to be subject to special consumption tax.
Regarding the scope of air conditioners subject to tax, taking into account the opinions of delegates, the Standing Committee of the Economic and Financial Committee agreed with the proposal of the drafting agency to regulate air conditioners with a capacity of over 24,000 BTU to 90,000 BTU subject to tax.
No tax is collected for air conditioners with a capacity of 24,000 BTU or less and types with a capacity of over 90,000 BTU.
Speaking on this content, Vice Chairman of the National Assembly Vu Hong Thanh said that the tax on air conditioners is aimed at reducing greenhouse gas emissions - the cause of global warming and climate change.
However, considering this an essential item, the Vice Chairman of the National Assembly said that all consumption tax on this item should be abolished.
According to the Vice Chairman of the National Assembly, there were delegates who proposed taxing only technology used in air conditioning. If the greenhouse gas emissions of the technology are low, the tax will be low; and any unit that applies high greenhouse gas emissions will be taxed high. This is also one of the solutions to encourage and promote science and technology and innovation.
Chairman of the Committee on Culture and Society Nguyen Dac Vinh said that special consumption tax will orient people's consumption. However, for essential goods that are used a lot by people, being included in the consumption tax will increase prices, affecting people.
Chairman of the Law and Justice Committee Hoang Thanh Tung said that the regulation on air conditioners with a capacity of over 24,000 BTU to 90,000 BTU subject to tax has resolved the wishes of the majority of air conditioners.
Because currently, commonly used air conditioners have a capacity of 24,000 BTU or less.
Mr. Hoang Thanh Tung agreed with the opinion of Vice Chairman of the National Assembly Vu Hong Thanh, it is advisable to study the removal of corporate income tax with conditions. In particular, it is possible to switch to applying environmental protection tax on technology and equipment that pollute the environment.
"harmony is very essential, not only in family life but also in office. With this weather, our agency cannot work without air conditioning. Business establishments and enterprises are the same, they cannot work without coordination," said the Chairman of the Law and Justice Committee.
Explaining later, Deputy Minister of Finance Cao Anh Tuan said that air conditioners with a capacity of less than 90,000 BTU are used a lot, consume a lot of electricity and are one of the factors that cause the world to heat up.
This is due to air conditioners' coolants, which damage the oxygen layer, negatively affecting the environment and climate. The Deputy Minister said that many countries in the world have applied for a license for several years before installing air conditioners.
Therefore, taking into account the opinions of delegates in previous discussion sessions, the drafting and reviewing agency continues to regulate air conditioners with a capacity of over 24,000 BTU to 90,000 BTU subject to tax.
