The special consumption tax proposal for sweet drinks is a part of a ministry proposal to revise five tax laws, including a value-added tax (VAT), special consumption tax, corporate income tax, personal income tax, and natural resources protection tax. In August last year, the ministry issued a proposal to place excise tax on sweetened beverages. This time, the authority announced that the excise tax rate would be 10% – in addition to 12% VAT. This would mean that all sweetened beverages, regardless of whether they are soft drinks, tea, coffee or energy drinks, will be subject to the excise tax. However, dairy products will be excluded. The ministry’s first proposal three years ago set the excise tax at 10% only on carbonated drinks. It said the adult obesity rate in Vietnam affected 25% of the population. For children under five years of age, the obesity rate had increased rapidly from 0.6% in 2000 to 5.3% in 2015, while the rate in HCM City had increased to 10.8% – and 12% in the downtown area. This means that the obesity rate in Vietnam is higher than the average rate in the Asian region and developing countries (the current global obesity rate is at 6.9%). Meanwhile, based on information from the World Health Organisation (WHO), sweetened beverages are said to have a negative impact on health. To restrict the use of sweetened beverages, 40 countries have already imposed special taxes on them. The ministry said obesity rates among children under five years… [Read full story]
Since 2013 the special consumption tax on alcoholic beverages and beer has been raised four times.From next year it will be 65%.Speaking to Viet Nam News on the sidelines of the forum, Nguyen Van Viet, the association chairman, said the growth of the beverages market in the first eight months of this year was 7%, the same level as previous years.“The growth was mainly due to soft drinks, which have not been affected by the tax. Alcoholic drinks saw no growth while beer witnessed low and steady growth.”The impact of the tax hikes would be clearer a year or two…... [read more]
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…... [read more]
Driving along the street as early as 6:00 am, one can easily spot people young and old sitting by the roadside with a ca phe sua da glass in hand.The famous and classic drink has long been part of the daily routine of the people of Saigon, the old name of Ho Chi Minh City many still prefer now.Be they college undergrads, office workers or blue-collar employees, young people in the vibrant city love kicking off their day with a glass of milky iced coffee.The drink has the power to ignite the brain, wake up neurons key to mental activity,…... [read more]
Value added tax increase and special consumption tax levy on soft drink might do more harm than good, small and medium firms in this field would suffer most and may stop operation, said Mr. Herbert Cochran, director of Vietnam Trade Facilitation Alliance (VTFA) in Hanoi this morning. A view of the workshop on challenges of policy and regulatory changes for foreign investors in Vietnam in Hanoi on December 7 (Photo: SGGP)Speaking at a workshop on challenges of policy and regulatory changes for foreign investors in Vietnam, he said that low income consumers would be affected and the Government’s tax revenue…... [read more]
Vietnam’s Finance Ministry has proposed a special consumption tax on some soft drinks that it claims contain an unhealthy amount of sugar, but its argument has been dismissed by other ministries. The Ministry of Industry and Trade said in a statement that imposing a special consumption tax on soft drinks because they contain sugar is not a convincing enough reason. It said the finance ministry needs to give a clearer explanation as to why soft drinks should be subject to higher taxes and why their consumption should be restricted. The trade ministry was repeating the same argument made by the…... [read more]
