Proposal to tax sugary drinks.

Proposal to add sugary soft drinks to the list of items subject to excise tax.

The Ministry of Finance proposes adding soft drinks meeting Vietnamese standards with a sugar content exceeding 5g/100ml to the list of items subject to special consumption tax, in order to implement the Party and State's directives on protecting public health.

Illustrative image. (Source: Internet)

The Ministry of Finance is seeking feedback on the draft Law on Special Consumption Tax (amended).

Regarding the subjects liable to excise tax, the Ministry of Finance stated: The current Excise Tax Law stipulates 10 groups of goods and 6 groups of services subject to excise tax. To expand the tax base, align with relevant specialized laws, and codify regulations already in place in subordinate legal documents (Decrees, Circulars), the Ministry of Finance proposes:

The draft amendment clarifies that the item "cigarettes, cigars and other tobacco products used for smoking, inhaling, chewing, sniffing, or sucking" should be changed to "tobacco as prescribed by the Law on Prevention and Control of Tobacco Harm, including cigarettes; cigars; pipe tobacco; chewing tobacco or other forms; and other tobacco products used for smoking, inhaling, chewing, sniffing, or sucking" to align with the Law on Prevention and Control of Tobacco Harm.

Amend the regulation to clearly define "alcohol" as "alcohol as defined by the Law on Prevention and Control of Harmful Effects of Alcohol and Beer, including other food-grade alcoholic beverages fermented from fruits and grains; and beverages prepared from food-grade alcohol" to align with the Law on Prevention and Control of Harmful Effects of Alcohol and Beer.

Amend and supplement the regulation on "motor vehicles with fewer than 24 seats, including vehicles that carry both passengers and goods, of the type with two or more rows of seats and a fixed partition between the passenger and cargo compartments" to "motor vehicles with fewer than 24 seats, including: passenger cars; four-wheeled passenger vehicles with 12 engines; passenger pickup trucks; double-cab cargo pickup trucks; vehicles that carry both passengers and goods with two or more rows of seats and a fixed partition between the passenger and cargo compartments" to align with the Vietnamese Standard on automobiles and the regulations on four-wheeled motor vehicles for passenger transport issued by the Ministry of Transport .

The draft proposal suggests replacing the regulation on "aircraft" with the regulation on "airplanes, helicopters, gliders" and adding clear guidance that aircraft, helicopters, gliders, and yachts subject to excise tax are those used for civilian purposes. This clarifies that the objects subject to excise tax are motorized aircraft and high-end items serving the personal consumption of high-income individuals in society.

The regulation clarifies that air conditioners with a capacity of 90,000 BTU or less are subject to excise tax as follows: "Air conditioners with a capacity of 90,000 BTU or less, excluding those designed by the manufacturer solely for installation in transport vehicles including cars, train carriages, ships, boats, and airplanes. In cases where organizations or individuals manufacture and sell them separately, or import them as individual components (condenser or evaporator), the goods sold or imported (condenser and evaporator) are still subject to excise tax as if they were complete products (complete air conditioners)" to codify the regulation currently in stable implementation under the law.

The revised regulations clarify that items subject to special consumption tax under the category of "votive offerings" do not include votive offerings that are children's toys or teaching aids, in order to codify the regulations currently in place under the law.

Simultaneously, the draft proposes adding soft drinks with a sugar content exceeding 5g/100ml, as a category subject to special consumption tax, in order to implement the Party and State's directives on protecting public health, the recommendations of the World Health Organization (WHO), UNICEF, and the Ministry of Health regarding the reality of diseases related to sugary drinks in Vietnam, and to promptly prevent and reduce the alarming rate of overweight and obesity in children and adolescents. This aims to prevent and minimize the risk of disease and the burden on healthcare for non-communicable diseases, raise awareness and limit the consumption of sugary drinks, bringing benefits to public health, especially for young people, the future generation of the nation, in line with international practices.

Source: https://baodautu.vn/de-xuat-bo-sung-nuoc-giai-khat-co-duong-vao-doi-tuong-chiu-thue-tieu-thu-dac-biet-d217675.html