Duties on cigarette, beer, wine to be increased
VGP - The National Assembly Standing Committee (NASC) agreed to the suggestion of the Ministry of Finance on raising excise taxes on cigarette, beer and wine during its September 25 session.
September 26, 2014 7:32 AM GMT+7
Accordingly, the current 65% tax on cigarette will be increased to 70% from January 1, 2016 and 75% from January 1, 2019.
The excise tax on beer, which is currently 50%, will be 55% from July 1, 2015, 60% from January 1, 2017 and 65% from January 1, 2018.
Meanwhile, the duty on wine over 20 degrees will be raised from 50% to 65% and that on wine below 20 degrees, currently at 25%, will be 35%.
Chairman of the NA Committee on Finance and State Budget Phung Quoc Hien said that the tax increases would not negatively affect businesses’ production but help raise the State budget collection and reduce the number of smokers.
However, Deputy Minister of Industry and Trade Do Thang Hai said that the Government studied the rises as it could lead to increased cigarette trafficking and decreased State budget collection.
Hien also suggested a rise of the excise duty on casino business from 30% to 35%.
In addition, the Government planned to suggest the NA remove personal income tax on casino players.
The NASC also agreed to the Government’s suggestions on removing the excise tax on several sustances used for gasoline blending and aircraft used for national defence and security, and supplementing prioritized tax on bio-fuel products.
The draft amendments and supplements to the Law on Excise Tax are scheduled to be approved in a NA session and come into effect in mid- 2015.
By Ngoc Van
