Amended Law on Special Consumption Tax: Need to harmonize interests

DNVN - Dr. Can Van Luc and a group of experts from BIDV Training and Research Institute recommended that the revised Law on Special Consumption Tax (SCT) should ensure harmony of interests, responsibilities and feasibility for the State, businesses and consumers. In particular, there should be a full impact assessment, and should not be in the direction of "exhaustive collection".

Speaking at the workshop “Comments on the Law on Special Consumption Tax (amended)” on the morning of September 20, Professor, Dr. Nguyen Mai - Chairman of the Association of Foreign Investment Enterprises (VAFIE) highly appreciated the Ministry of Finance and the Drafting Committee of the Law on Special Consumption Tax (amended) for considering and accepting these recommendations. Currently, the Law on Special Consumption Tax has been revised and submitted to the National Assembly Standing Committee.

However, there are still different opinions surrounding issues such as: expanding taxable items, regulations on tax schedules, tax rates, description of taxable items, regulations on the content of some articles of the law to comply with specialized laws, regulations on tax refunds, tax deductions, etc.

Regarding the taxable subjects, in addition to opinions that it is necessary to expand the subjects subject to special consumption tax, many opinions also suggest that it is necessary to carefully study the policy impact when expanding the taxable subjects. For example, adding sugary drinks to this taxable subject is raising many questions.

There are many different opinions on the tax rate increase for alcohol and beer products in the draft Law on Special Consumption Tax (amended).

What is the purpose of adding this item to the list of goods subject to Special Consumption Tax? If it is for health reasons, are sugary drinks the cause of overweight and obesity? If it is to increase budget revenue, is this purpose achievable and feasible?

In addition, many opinions have proposed to remove air conditioners from the list of products subject to special consumption tax because they are not luxury consumer products. Regarding tax rates, there are still many different opinions on increasing tax rates for products such as alcohol, beer, and gasoline.

“Regarding the timing and roadmap for implementation, some opinions say that changes in the Law on Special Consumption Tax should be applied immediately to adjust consumer behavior and protect social interests. However, many businesses propose to apply changes in tax laws on a long-term roadmap.

Thereby, helping businesses to adapt and not have their production and business activities interrupted, especially in the context of businesses facing many difficulties," Mr. Mai emphasized.

Sharing at the workshop, Dr. Can Van Luc - BIDV chief economist said that his research and the BIDV Training and Research Institute's expert group found that the draft Law on Special Consumption Tax (amended) has redefined more clearly the subjects subject to tax, subjects not subject to tax and taxpayers.

At the same time, the draft expands the taxable subjects and increases tax rates for some beverage products considered harmful to health; specifies more clearly and supplements cases and conditions for tax deduction, tax refund, and time for determining special consumption tax.

However, the drafting agency should clarify the main purpose of this tax law amendment. Is the amendment mainly to increase budget revenue or to contribute to regulating consumer behavior; ensure people's health, reduce pressure on the healthcare system, thereby reducing pressure on the budget, or both?

“The revised tax law needs to ensure the harmony of interests, responsibilities and feasibility for the State, businesses and consumers. In particular, major changes in tax policy need to have a full impact assessment, based on scientific basis and practical evidence.

On the other hand, increasing and diversifying State budget revenue sources should not be in the direction of "collecting all" but should be associated with nurturing revenue sources in the long term," Mr. Luc recommended.

According to Mr. Luc, the BIDV Training and Research Institute's expert group recommended a number of points to consider in the process of amending the Law on Special Consumption Tax. That is, it is necessary to calculate the tax rate, timing and roadmap for tax increase appropriately and feasiblely. Avoid the phenomenon of "difficulty on top of difficulty", too quickly can cause shock, causing adverse effects such as circumventing the law, switching to other products with more harmful effects...

At the same time, tax rates should be applied according to alcohol concentration and sugar content to avoid leveling. Or goods and services with the same characteristics should be subject to equivalent tax rates.

Regarding tax calculation methods, it is necessary to consider both absolute and mixed tax calculation methods instead of only relative tax calculation. It is necessary to synchronize many policies and solutions to protect official products, especially against smuggling, tax evasion, counterfeit goods and fake goods.

In addition, it is necessary to review to ensure consistency with relevant laws and free trade agreements on Vietnam's roadmap for reducing import and export taxes on more popular goods such as cars, air conditioners, and gasoline.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/chinh-sach/luat-thue-tieu-thu-dac-biet-sua-doi-can-hai-hoa-loi-ich/20240920091430986