Two ministries propose 10% tax increase on alcohol, beer
VGP - Tax rates on alcohol and bear should be increased by at least 10 percent in a bid to reduce consumption and health risks, suggested the Ministry of Finance and the Ministry of Health.
Beer products on dispay at a Vietnamese supermarket
The proposal has been included in a draft law amending and supplementing a number of the Law on Special Consumption Tax, which will be submitted to the National Assembly for consideration and approval at its 9th working session in May 2025.
The current tax law levies a 65 percent excise tax on liquors with an ABV of 20 percent or above. Drinks with an ABV below 20 percent have an excise tax of 35 percent, and beer has its own excise tax also at 65 percent.
Viet Nam's tax is only around 30 percent of these products' retail prices compared to 40-85 percent in many countries, according to the World Health Organization (WHO).
Last July, the World Bank recommended Viet Nam should consider imposing a 155 percent special consumption tax on alcoholic beverages in response to the rising number of alcohol-related deaths and illnesses.
Data from the World Bank shows alcohol consumption surges 177 percent between 2008 and 2022.
The number of alcohol-related death in Viet Nam is now 140 percent higher than the average of lower middle-income country. /.
