Vietnam’s Ministry of Finance has proposed a substantial increase in the special consumption tax on beers and alcoholic beverages with an alcohol content exceeding 20 degrees by the year 2030. The proposed changes could potentially double or nearly double the current tax rates, according to reports from Xinhua news agency and Vietnam News.
On Tuesday, the ministry outlined two potential scenarios for the tax hike:
Option One- This proposal suggests raising the tax rate by over 5% by 2026. Under this option, the prices of these beverages could increase by approximately 10% compared to 2025.
Option Two- This alternative recommends a more significant increase, with the tax rate rising by over 15% by 2026. This scenario could lead to a price increase of around 20% compared to 2025.
Economists and industry experts have expressed concerns regarding these proposed tax hikes. They urge caution and recommend that regulators carefully consider the potential long-term effects on the national budget and the economy.
Currently, Vietnam’s special consumption tax applies to a variety of goods and services, including cigarettes and cigars, various types of alcohol, beer, cars with fewer than 24 seats, petrol and petrol additives, playing cards, votive papers, motorcycles over 125cc, aeroplanes, and yachts.
Also Read: Mark Zuckerberg’s Romantic Gesture, Installed Sculptures Of Wife
