Mixed opinions with regard to the proposal imposing 10% excise taxes on sweetened beverages

The Hanoitimes – Under this draft proposal, the Ministry of Finance proposed to impose 10% excise tax on sweetened beverages, excluding dairy products as of 2019. Recently, the Ministry of Finance has completed second proposal to revise five tax laws, including the value-added tax (VAT) law, excise tax law, corporate tax law, personal income tax law, and royalties law.    Sweetened beverages are expected to be under 10% of excise tax. On August 2017, the Ministry of Finance has issued the first proposal, in which for the first time sweetened beverages are subject to excise tax. This time, the authority clarified the excise tax rate for these products is of 10%, in addition to 12% of VAT. As such, all sweetened beverages, regardless of whether it is soft drinks, tea, coffee or energy drink will be under the imposition of excise tax, excluding dairy products. The Ministry of Finance referred to the current adult obesity rate in Vietnam accounted for 25% of the population. For children under 5 years of age, the obesity rate has increased rapidly from 0.6% in 2000 to 5.3% in 2015, while this rate in Ho Chi Minh city has increased to 10.8%, and 12% in the downtown area. As such, Vietnam’s obesity rate is higher than the average rate of the Asian region and developing countries (the current global obesity rate is at 6.9%). Meanwhile, based on the recommendation of the World Health Organization (WHO), sweetened beverages have negative impact on customers’ health. In order… [Read full story]


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