Vietnam is planning to significantly increase the special consumption tax on alcoholic beverages. Under a draft proposal by the Ministry of Finance, the tax on these drinks will rise to 100% by 2030, a significant increase from the current rate of 65%. This move is part of a broader strategy to reform the country's tax system, aiming to modernize it and align with international standards.
The proposal is driven by concerns over public health and aims to curb the consumption of alcohol, which is associated with various health and social issues. The Ministry of Finance's initiative is also expected to boost government revenue, which can be redirected to other public health initiatives.
In addition to alcohol, the Ministry of Finance has proposed extending the special consumption tax to sugary beverages. This inclusion aims to tackle obesity and related health problems within the Vietnamese population. However, this proposal has met with resistance from various stakeholders, including businesses and consumers, who argue that the tax lacks scientific backing and could place additional financial burdens on an economy still recovering from the COVID-19 pandemic.
