Proposal to tax sugary drinks

Proposal to add sugary soft drinks to the list of subjects subject to special consumption tax

The Ministry of Finance proposes to add soft drinks according to Vietnamese standards with sugar content above 5g/100ml to the list of subjects subject to special consumption tax to implement the Party and State's guidelines on protecting people's health.

Illustration photo. (Source: Internet)

The Ministry of Finance is seeking comments on the draft Law on Special Consumption Tax (amended).

Regarding the subjects subject to special consumption tax, the Ministry of Finance said: The current Law on Special Consumption Tax stipulates 10 groups of goods and 6 groups of services subject to special consumption tax. In order to expand the tax base, synchronize with relevant specialized laws and legalize the regulations being implemented stably in sub-law documents (Decrees, Circulars), the Ministry of Finance proposes:

The draft amendment clearly defines the item "cigarettes, cigars and other tobacco products for smoking, inhaling, chewing, sniffing, and sucking" as "cigarettes as prescribed by the Law on Prevention and Control of Tobacco Harms, including cigarettes; cigars; shredded tobacco; pipe tobacco or other forms; other tobacco products for smoking, inhaling, chewing, sniffing, and sucking" to be consistent with the Law on Prevention and Control of Tobacco Harms.

Amend the regulation to clearly define the item "alcohol" as "alcohol according to the provisions of the Law on Prevention and Control of Harmful Effects of Alcohol and Beer, including other alcoholic beverages fermented from fruits and cereals; beverages made from alcoholic beverages" to be consistent with the Law on Prevention and Control of Harmful Effects of Alcohol and Beer.

Amend and supplement the regulations on the item "cars with less than 24 seats, including cars that can both transport people and goods, with two or more rows of seats, designed with a fixed partition between the passenger compartment and the cargo compartment" to "motorized vehicles with less than 24 seats, including: passenger cars; four-wheeled passenger cars with 12 engines; passenger pick-up cars; double-cabin cargo pick-up cars; cars that can both transport people and goods, with two or more rows of seats, designed with a fixed partition between the passenger compartment and the cargo compartment" to synchronize with the Vietnamese Standards on automobiles and regulations on four-wheeled passenger cars with engines of the Ministry of Transport .

The draft proposes to replace the regulation on "aircraft" with the regulation on "airplanes, helicopters, gliders" and to add clear instructions on the items of aircraft, helicopters, gliders and yachts subject to special consumption tax as those used for civil purposes to clarify that the subjects subject to special consumption tax are aircraft with engines and are high-end items serving the personal consumption purposes of high-income people in society.

Amending the regulation clearly stating that air conditioners with a capacity of 90,000 BTU or less are subject to special consumption tax as follows: "Air conditioners with a capacity of 90,000 BTU or less, except for those designed by the manufacturer to be installed only on means of transport including cars, railway cars, ships, boats, and airplanes. In case the manufacturing organization or individual sells or the importing organization or individual imports each part separately, the hot or cold unit, the goods sold or imported (hot or cold unit) are still subject to special consumption tax as for the finished product (complete air conditioner)" to legalize the regulation that is being stably implemented in the sub-Law document.

Amending regulations to clearly state that "votive goods" subject to special consumption tax do not include votive goods that are children's toys and teaching aids to legalize regulations that are being stably implemented in sub-law documents.

At the same time, the draft adds soft drinks according to Vietnamese Standards (TCVN) with sugar content above 5g/100ml, to the list of subjects subject to special consumption tax to implement the Party and State's guidelines on protecting people's health, recommendations of the World Health Organization (WHO), the United Nations Children's Fund UNICEF and the Ministry of Health on the reality of diseases related to sugary soft drinks in Vietnam, promptly preventing and reducing the alarming situation of overweight and obesity in children and adolescents, in order to prevent and reduce the risk of disease and the medical burden of non-communicable diseases, raise awareness and limit the consumption of sugary soft drinks, bringing benefits to public health, especially for young people, the future generation of the country, in accordance with international practice.

Source: https://baodautu.vn/de-xuat-bo-sung-nuoc-giai-khat-co-duong-vao-doi-tuong-chiu-thue-tieu-thu-dac-biet-d217675.html