Continuing the 8th Session, on the morning of November 22, the National Assembly discussed in groups the draft Law on Corporate Income Tax (amended) and the draft Law on Special Consumption Tax (amended).
Discussing in groups about the draft Law on Special Consumption Tax (amended), the majority of opinions agreed with the addition of soft drinks according to Vietnamese Standards, with sugar content over 5g/100ml to the subjects subject to special consumption tax; at the same time, requesting the Government to clarify the content "according to Vietnamese Standards". Because this regulation can lead to difficulties in implementation for imported products that are not produced according to Vietnamese Standards, but still have sugar content over 5g/100ml. Some opinions suggested explaining more clearly the ability to achieve the goal of this policy in contributing to protecting people's health; supplementing information related to international experience; carefully assessing the impact on the aspect of protecting consumer rights.
Agreeing with the amendment of the current Law on Special Consumption Tax, delegate Duong Van Phuoc (Quang Nam) said that when collecting opinions from businesses and people in the area, many opinions reflected that our country's current tax policy is quite extensive, with some goods subject to high tax rates. This on the one hand creates revenue for the budget, but on the other hand also causes difficulties for taxpayers. From the above reality, the delegate suggested that the drafting agency should consider and calculate carefully when adding taxable items and increasing tax rates for some goods.
Commenting on the special consumption tax on alcohol and beer stipulated in Article 8, delegate Tran Thi Hien (Ha Nam) stated: Article 8 of the draft Law currently proposes two options for the roadmap to increase tax rates on alcohol and beer. According to the option proposed by the Ministry of Finance, alcohol with an alcohol content of 20 degrees or more and beer will be subject to a gradually increasing tax rate from 2026, up to 100% in 2030. Similarly, alcohol with an alcohol content of less than 20 degrees will be subject to a tax rate of 70% in 2030.
According to delegate Tran Thi Hien, the Government's report focuses on analyzing the method of calculating special consumption tax, whether to follow the current method or switch to a mixed method. However, the delegate assessed that the analysis and assessment of the impact of the law, especially on other industries and the economy in general, is still sketchy, mostly based on the World Health Organization's proposal to increase taxes to increase product prices.
The Ha Nam provincial delegate said that there are some contents that need further research before concluding which tax rate and tax increase roadmap are appropriate. The delegate analyzed that it is necessary to place the alcoholic beverage industry in the supply chain and value chain of the whole economy in general to assess the impact comprehensively. In fact, the alcohol and beer industry is directly related to supporting industries such as packaging production, packaging, transportation, and indirectly related to the tourism and culinary fields. Therefore, delegate Tran Thi Hien said that it is necessary to estimate: with the proposed tax increase and tax increase roadmap, how will other industries be affected?
“Can this impact be offset by special consumption tax revenue, or reduce social pressure and medical burden? Specific data is needed so that delegates can visualize the impact,” said delegate Tran Thi Hien.
In addition, many opinions also suggested that the drafting agency consider providing a suitable roadmap for increasing special consumption tax in the next 3-5 years for some specific products, to avoid causing major impacts on businesses.
Regarding the current tax rate for tobacco products, according to delegate Dang Bich Ngoc (Hoa Binh), the draft Law on Special Consumption Tax (amended) stipulates the applicable tax rate is 75%. Agreeing with this content in the draft Law, the delegate said that keeping the tax rate at 75% is reasonable, because if the increase is too sudden, it will affect businesses trading in this product as well as supporting businesses.
"In the current economic conditions, we need a roadmap for appropriate increases that still meet development requirements, as well as create favorable conditions for businesses and current units," said delegate Dang Bich Ngoc; at the same time, she suggested continuing to research and review so that the application of taxes is both a source of revenue and still ensures the requirements of supporting people to gradually convert production and processing of tobacco materials in the coming period.
Previously, at the meeting, the National Assembly heard submissions and reports on the draft Law on Corporate Income Tax (amended) and the draft Law on Special Consumption Tax (amended).
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