Small air conditioners may not be subject to special consumption tax

The Law on Special Consumption Tax (amended) was submitted by the Government to the National Assembly for comments at the 8th session in October 2024, and is expected to be approved at the ongoing 9th session.

In the latest draft sent to National Assembly delegates, the Government still keeps items such as air conditioners, gasoline of all kinds, alcohol, beer, and soft drinks in this taxable group.

However, small capacity air conditioners (under 18,000 BTU) are removed from the taxable group. The type with capacity from 18,000-90,000 BTU or less is still subject to the 10% special consumption tax, similar to the level maintained from 2008 to present.

An air conditioner model installed in a household. Photo: Casper

Previously, when giving comments on the draft Law on Special Consumption Tax, many National Assembly deputies, ministries, and experts said that air conditioning has become an essential need in work and life. Therefore, imposing tax on this item is unnecessary and should be abolished.

In fact, air conditioners with a capacity of 90,000 BTU or less are popular, of which the 9,000 - 18,000 BTU type is commonly used in households, from urban to rural areas. Currently, this product is manufactured with inverter technology, saving electricity.

Along with air conditioning, alcohol, beer and soft drinks have adjusted routes and tax rates. Specifically, alcohol with 20 degrees or more is expected to increase from the current 65% to 90% in 5 years. The maximum tax on alcohol below 20 degrees is 60%, beer will also increase from the current 65% to 90% in the same period.

Similarly, soft drinks with sugar content above 5 grams per 100 ml (soft drinks) will be subject to special consumption tax from 2027 - a year later than previously planned. The tax rate in the first year is 8%, then increases to 10% from 2028.

Previously, VBA proposed to delay the tax increase on beer and alcohol until 2028, two years longer than originally planned, with an increase of 5% per year for five years. As for soft drinks, the association suggested not adding them to the taxable list for further comprehensive assessment.

As for gasoline, the proposals remain the same as the previous draft and current law. Specifically, the applicable rate for gasoline is 10%, E5 gasoline is 8% and E10 gasoline is 7%.

The National Assembly is expected to discuss this draft law today, May 9.

Source: https://baoquangninh.vn/dieu-hoa-loai-nho-co-the-khong-bi-ap-thue-tieu-thu-dac-biet-3357240.html