At the 9th Session of the 15th National Assembly held on the morning of June 14, the National Assembly passed the Law on Special Consumption Tax (amended) with 454/448 delegates in favor, reaching a rate of 93.72%.
Regarding tax rates and absolute tax rates, the report of the Standing Committee of the National Assembly reflects that there are opinions suggesting to study increasing tax on cigarettes from the beginning of 2026 with the increase recommended by the World Health Organization to reach an absolute tax rate of VND 15,000/pack and a tax rate of 75%; It is proposed that the tax rate be adjusted periodically every 2 years according to the inflation rate, and at the same time, promulgate regulations on minimum retail prices with tax determined by the State. In addition, there are opinions suggesting a roadmap to increase tax on beer from January 1, 2027.
The Standing Committee of the National Assembly explained that in the context of the selling price of cigarettes, alcohol and beer in Vietnam tending to be cheaper compared to people's income, leading to increased consumption demand, the imposition of high tax rates from the first year the Law takes effect may reduce the demand for cigarettes, alcohol and beer.
In order to contribute to achieving the goal of increasing selling prices, reducing the use of tobacco, alcohol and beer, and at the same time contributing to achieving the set economic growth target, ensuring compliance with the practical situation at home and abroad, and taking into account the opinions of the National Assembly Deputies, the Standing Committee of the National Assembly has agreed with the proposal of the Drafting Agency to revise the draft Law in the direction of stipulating the start of increasing taxes on alcohol and beer and applying absolute tax on tobacco from 2027 with the tax increase roadmap as stated in the draft Law. Therefore, we would like to ask the National Assembly to allow us to keep the draft Law as it is.
Accordingly, the Law on Special Consumption Tax (amended) stipulates many types of goods subject to this tax, including tobacco goods subject to special consumption tax, according to the provisions of the Law on Prevention and Control of Tobacco Harms.
Specifically, Article 8 of the draft stipulates the tax rate and absolute tax rate of special consumption tax on goods and services. In which, the special consumption tax rate on cigarettes is levied according to a roadmap, in which the absolute tax rate on cigarettes from January 1, 2031 is 10,000 VND/pack.
The special consumption tax rates on tobacco are as follows:
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Special consumption tax rate on tobacco. Screenshot from the Draft Law on Special Consumption Tax recently passed by the National Assembly on the morning of June 14. |
Source: https://baophapluat.vn/quoc-hoi-chot-ap-thue-tieu-thu-dac-biet-tuyet-doi-voi-thuoc-la-post551809.html
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