Agree not to tax air conditioners with capacity under 24,000 BTU

The Standing Committee of the National Assembly has agreed not to collect tax on air conditioners with a capacity of 24,000 BTU or less and those with a capacity of over 90,000 BTU.

Vice Chairman of the National Assembly Nguyen Duc Hai chaired the meeting.

Air conditioners with a capacity of over 24,000 BTU to 90,000 BTU are subject to tax.

On the morning of June 4, the National Assembly Standing Committee (NASC) gave opinions on explaining, accepting, and revising the draft Law on Special Consumption Tax (amended).

Chairman of the Economic and Financial Committee Phan Van Mai presented a report stating that after the National Assembly deputies discussed the Draft Law on Special Consumption Tax (amended) in the Hall, the Standing Committee of the Economic and Financial Committee closely coordinated with the drafting agency and relevant agencies to absorb, revise and complete the draft Law. Up to now, the contents of explanation, acceptance and revision of the draft Law have basically been agreed upon by the reviewing agency and the drafting agency.

Chairman of the Economic and Financial Committee Phan Van Mai presented the report.

Regarding the opinion of the delegate proposing to regulate that air conditioners with a capacity of over 24,000 BTU to 90,000 BTU are subject to tax, Mr. Phan Van Mai said that the Standing Committee of the Economic and Financial Committee agrees with the proposal of the drafting agency to regulate that air conditioners with a capacity of over 24,000 BTU to 90,000 BTU are subject to tax. Thus, no tax will be collected on air conditioners with a capacity of 24,000 BTU or less and those with a capacity of over 90,000 BTU.

There is a proposal to not collect tax on natural fruit juice products and specialized nutritional drinks. Regarding this opinion, the Standing Committee of the Economic and Financial Committee stated that, according to the provisions of the draft Law, taxable sugary soft drinks are products within the concept of soft drinks according to Vietnamese Standards with a sugar content of over 5g/100ml, excluding drinks such as milk and dairy products; liquid foods used for nutritional purposes; natural mineral water and bottled water; pure fruit and vegetable juices and nectars (molasses) of vegetables, fruits and cocoa products. This shows that products such as natural fruit juices, coconut water, dairy products, liquid foods used for nutritional purposes... are not subject to special consumption tax.

Mr. Mai also said that there are still many different opinions on adding other sugary products as well as other goods and services to the taxable list as proposed by some National Assembly deputies. Some products have also been raised by the drafting agency during the process of building the Draft Law.

Tax sugary drinks to increase awareness, reduce consumption

At the meeting, the majority of delegates expressed their agreement with the draft law's initial acceptance of many delegates' opinions related to the issue of air conditioning, especially the regulation on taxing air conditioners with a capacity from 24,000 BTU to 90,000 BTU.

Regarding the tax on sugary soft drinks, some delegates expressed concerns because this would lead to price increases, directly affecting the people. Instead, it is necessary to emphasize the importance of educating people on reasonable use instead of imposing too high a tax, which would affect production and business and the people's right to choose.

Regarding this content, Deputy Minister of Finance Cao Anh Tuan said that the regulation only applies tax to drinks with sugar content of 5g/100ml or more. Beverages that are determined not to be subject to tax include milk, dairy products, nutritional liquid foods, natural mineral water, bottled water, pure fruit and vegetable juice, fruit and vegetable molasses, cocoa products, coconut water, etc.

Deputy Minister of Finance Cao Anh Tuan speaks

According to Mr. Tuan, there are currently 107 countries and territories applying this tax with a common tax rate of 20 - 40% and this is also the viewpoint that the Ministry of Health and organizations related to health protection firmly support. In the first phase, the draft was only designed at 8% - 10%, postponing the application period to 2027.

“This is a very reasonable level compared to the region and the world, to initially increase awareness and reduce the use of sugary soft drinks,” said the Deputy Minister of Finance.

In his concluding remarks, Vice Chairman of the National Assembly Nguyen Duc Hai said that the National Assembly Standing Committee agreed to stipulate that air conditioners with a capacity of 24,000 BTU to 90,000 BTU are subject to tax (no tax is collected for air conditioners with a capacity of 24,000 BTU or less and those with a capacity of over 90,000 BTU).

The National Assembly Standing Committee also agreed to keep sugary soft drinks and gasoline subject to special consumption tax as drafted. Regarding the tax on sugary soft drinks, the Vice Chairman of the National Assembly emphasized that there is scientific basis from the Ministry of Health and international health organizations on the harmful effects of sugary soft drinks on health.

According to VTV

Source: https://baothanhhoa.vn/thong-nhat-khong-ap-thue-dieu-hoa-nhet-do-cong-suat-duoi-24-000-btu-250981.htm