Consider limiting the excise tax on air conditioners

Continuing the program of the Conference of National Assembly Deputies working full-time to give opinions on some contents of the draft law submitted to the National Assembly at the 9th Session, this morning, March 26, delegates discussed the draft Law on Special Consumption Tax (amended).

The 7th Conference of Full-time National Assembly Deputies

Reporting on some basic contents in the explanation, acceptance and revision of the draft, the Standing Committee of the Economic and Financial Committee said that there was a proposal to add non-taxable objects such as gasoline and air conditioners because these are essential goods.

The audit agency stated that in Vietnam, gasoline has been subject to special consumption tax since 1995. To encourage the use of biofuel, the Law on Special Consumption Tax has stipulated a preferential tax rate of 8% for E5 gasoline and 7% for E10 (lower than the 10% tax rate applied to mineral gasoline).

This provision is consistent with the objective of special consumption tax which is to regulate consumption of goods that need to be used economically and is consistent with international practice.

In addition, in the context of environmental pollution and climate change being global issues, the Vietnamese Government's commitment at the COP26 Conference to achieve net zero emissions by 2050, along with other solutions, the current collection of special consumption tax on gasoline (including E5 and E10 gasoline) is appropriate, contributing to reducing emissions and orienting economical consumption.

Therefore, the receiving and explaining agency requests to keep it as the draft law.

Regarding air conditioners, the Standing Committee of the Economic and Financial Committee stated that the collection of special consumption tax on air conditioners with a capacity of 90,000 BTU or less is being applied stably to raise awareness about limiting consumption as well as orienting consumption to save electricity and protect the environment.

However, as the National Assembly delegate stated, the demand for refrigeration and air conditioning equipment in our country is increasing and becoming popular to meet the normal needs of people in conditions of increasingly high temperatures.

"Therefore, taking into account the opinions of National Assembly deputies, the drafting agency is considering a plan to limit the scope of air-conditioner products subject to special consumption tax," the agency said.

Source: https://vov.vn/chinh-tri/quoc-hoi/can-nhac-gioi-han-lai-mat-hang-dieu-hoa-nhet-do-bi-danh-thue-tieu-thu-dac-biet-post1187273.vov