DNVN - In recent years, the beer and beverage industry has contributed greatly to the State budget, with an average of nearly 60 trillion VND per year. The production value of the beverage industry accounts for about 5.6 - 6% of the total industrial production value, in which beer production and trading have made important contributions.
On June 8, 2024, the National Assembly passed Resolution No. 129/2024/QH15 on the 2025 Law and Ordinance Development Program, adjusting the 2024 Law and Ordinance Development Program. Accordingly, the amended Law on Special Consumption Tax (SCT) has been included in the 2025 Law and Ordinance Development Program; added to the 2024 Law and Ordinance Development Program, submitted to the National Assembly for comments at the 8th session (October 2024) and approved at the 9th session (May 2025).
The tax increase options proposed by the Ministry of Finance will have a huge impact on beer businesses. Therefore, the beer and alcohol industry also calculated the impacts and proposed a more suitable option. At many seminars and meetings on special consumption tax, many state agencies, associations, experts, and businesses have mentioned the lack of a comprehensive quantitative assessment of the beer industry on the proposal to increase special consumption tax.
In this context, the Institute for Industry and Trade Policy and Strategy (Ministry of Industry and Trade), the Vietnam Beverage Research Institute, in collaboration with a group of experts from the Central Institute for Economic Management (CIEM) and the General Statistics Office, conducted a “Report assessing the impact of the draft increase in special consumption tax on beer”. The report was just released on the afternoon of November 25.
According to the report, the beer industry plays a very important role in generating revenue for the budget through direct taxes from beer production and other taxes through related activities such as retail distribution services, including import and export services.
In recent years, the beer and beverage industry has contributed greatly to the State budget, with an average of nearly 60 trillion VND per year. The production value of the beverage industry accounts for about 5.6 - 6% of the total production value of the industry, in which beer production and trading have made important contributions besides cultural and historical values.
The industry has created jobs for tens of thousands of direct workers and millions of indirect workers in the beer supply chain from production. Supplying raw materials for production, processing to circulation, distribution, packaging, transportation, preservation, wholesale, retail to consumers and serving export.
The beer industry has attracted foreign investment capital and modern advanced technologies. In addition, businesses in the industry always prioritize and pay attention to devoting a significant portion of their budget to actively participate in sustainable development activities according to Environmental-Social and Transparent Governance (ESG) criteria.
Assessing the impacts of tax increases, with evidence based on official data and scientific methods, the research team reported that in terms of economic impacts, all three options for increasing special consumption tax on the beer and beverage industry proposed by the Ministry of Finance will affect the production of the beer industry, reducing the production of 21 industries related to the beer industry's inputs in the economy.
When increasing the excise tax on beer, the state budget revenue from product tax (indirect tax) increases in all three options. However, the budget revenue from indirect tax only increases in the short term. On the other hand, increasing tax further affects employment opportunities and income of workers. As a result, the GDP of the economy declines.
Therefore, based on the overview, the general situation of beer enterprises is that the industry is vulnerable to shocks, including policy changes. The research team proposed considering option 3 (postponing the implementation of the special consumption tax increase until 2027, increasing by 5% every 2 years until 2031).
According to the report, this option is more harmonious in terms of objectives. Negative impacts on the economy are reduced to a lesser extent, ensuring a relative level of policy stability, limiting risks affecting employment opportunities and income of workers, and social security.
The “Impact Assessment Report of the Draft on Increasing Special Consumption Tax on Beer” is expected to be a reliable source of information, with useful reference value for the National Assembly, the Government, the drafting committee and relevant ministries to refer to and consider the comprehensive impacts of the proposed increase in Special Consumption Tax on Beer, thereby moving towards a suitable tax policy.
Ha Anh
Source: https://doanhnghiepvn.vn/kinh-te/chinh-sach/nganh-bia-va-do-uong-dong-gop-gan-60-ngan-ty-dong-vao-ngan-sach-moi-nam/20241125054806712
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