MoF proposes a hike in special consumption tax on cigarettes, beer, and spirits

Your browser does not support the audio element. The ministry is collecting public opinions on the proposal to develop the revised Law on Special Consumption Tax in which the SCT applied in these products should be increased, saigondautu.com.vn reported. Currently, the country applies an excise tax on alcohol of  三 五- 六 五 per cent), beer ( 六 五 per cent) and cigarettes ( 七 五 per cent). — Photo kinhtemoitruong.vn

HÀ NỘI — The Ministry of Finance has proposed to increase the special consumption tax (SCT) on a number of items harmful to health including tobacco, beer, and alcoholic products to limit imports, production and consumption.

The ministry is collecting public opinions on the proposal to develop the revised Law on Special Consumption Tax in which the SCT imposed on these products should be increased, saigondautu.com.vn reported.

In addition, the ministry also proposed to add new tobacco products and new equipment and trading in online video game services to be subject to excise tax, according to the online newspaper.

The MoF said the taxes on alcohol and beer in Việt Nam are still low. Currently, the country applies an excise tax on alcohol of  三 五- 六 五 per cent, beer  六 五 per cent and cigarettes  七 五 per cent.

According to the World Health Organisation calculations, the tax rate only accounted for about  三0 per cent of the retail price, compared to  四0- 八 五 per cent recorded in many countries.

Though the SCT on alcohol and beer products had increased from  二0 一 六 to  二0 一 八, Việt Nam was still the highest beer consumer in Southeast Asia and the third in Asia after Japan and China. In  二0 一 九, the average beer consumption per person was  四 七. 六 litres,  一. 二 times the number of  二0 一 五 while the consumption of spirits and white wine per person was  三. 四 litres,  一.0 二 times the  二0 一 五 figure.

Meanwhile, tobacco taxes accounted for approximately  三 八. 八 五 per cent of the retail sale price of cigarettes in Việt Nam, much lower than  五0- 八0 per cent seen in other countries such as Thailand ( 七0 per cent), Singapore ( 六 九 per cent), France ( 八0 per cent).

The World Health Organisation and the World Bank have reco妹妹ended that the proportion of consumption tax should account for  六 六- 七 五 per cent of the retail price of cigarettes. — VNS