Proposal to remove special consumption tax on gasoline

Comments on the draft Law on Special Consumption Tax (amended) The Vietnam Federation of Commerce and Industry proposed that the Ministry of Finance consider removing special consumption tax on gasoline and air conditioners; re-study the roadmap for increasing taxes on alcohol, tobacco, sugary drinks, etc.

In comments sent to the Ministry of Finance, Vietnam Federation of Commerce and Industry (VCCI) believes that gasoline is subject to two types of taxes at the same time that limit consumption: Special Consumption Tax and Environmental Protection Tax.

According to VCCI, gasoline Since gasoline is not a luxury item, the special consumption tax is also aimed at protecting the environment. Therefore, this agency proposed that the Ministry of Finance consider removing the special consumption tax on gasoline. If necessary, the Environmental Protection Tax will be adjusted to match the objectives of this tax.

VCCI also proposed to remove special consumption tax on air conditioner temperature after 26 years this item is subject to tax. This agency believes that the current context is different, air conditioners have become popular, different from 1998 when luxury goods

VCCI proposes to remove special consumption tax on gasoline.

In the draft revised Law on Special Consumption Tax that is being consulted, the Ministry of Finance proposes that from 2026, the special consumption tax on cigarettes will remain at the current rate of 75%, with an absolute tax rate of VND5,000 per pack of cigarettes, and VND10,000 in 2030. ale It is also proposed to increase gradually, to 100% by 2030.

VCCI said that businesses agree with the Party and State's viewpoints on using policies. excise tax to protect people's health, limit the consumption of products harmful to health. However, the draft proposes a very strong and rapid tax increase, which will make it impossible for businesses to adjust production capacity to match the decrease in consumption output due to tax policy.

The Ministry of Finance proposes to impose a 100% tax on alcohol by 2030.

“This will lead to many investment projects losing money, unable to recover capital, and making it difficult to change careers for the surplus labor from alcohol and tobacco factories.

Therefore, it is recommended that the research drafting agency propose tax increase roadmap for alcohol and cigarette "More suitable to the production and business situation of enterprises, prioritize choosing options with a more stable tax increase rate", VCCI recommended.

VCCI also believes that it is necessary to consider and evaluate more carefully the impact, implementation measures, as well as a suitable roadmap for the proposed 10% tax on sugary soft drinks.

“This policy will negatively impact Vietnamese beverage businesses, especially purely domestic businesses. Meanwhile, foreign businesses have experience and technology in converting to sugar-free but still sweet beverage products,” VCCI is concerned.

Also in the comments sent The Ministry of Finance and VCCI proposed that the drafting agency consider amending regulations on handling cases where taxable prices are not based on normal transaction prices on the market; consider adding cases of tax deduction and refund for the use of commercial cars to produce specialized cars; and further study the tax rate for cars running on gasoline combined with electric power (hybrid cars).

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