DNVN - The report "Assessing the impact of the proposal to increase special consumption tax on beer" jointly researched by a number of research agencies under the Ministry of Industry and Trade and the Ministry of Finance said that the solution to ensure harmony for all parties is to postpone the tax increase deadline until 2027, increase the tax at a rate of 5%/2 years and maintain it at 80% in 2031.
The Law on Special Consumption Tax (amended) has been included in the Law and Ordinance Development Program for 2025, and will be submitted to the National Assembly for approval at the 9th session (May 2025). One of the important contents amended in the draft is to increase the special consumption tax rate (SCT) on beer.
The current excise tax rate for beer is 65%. The draft proposes options to increase the tax rate by percentage, applied annually in the period 2026 - 2030.
Accordingly, the drafting agency proposed 2 PAs. PA1 increases tax from 2026, increasing annually by 5% each year so that by 2030 the special consumption tax rate on beer is 90%. PA2 increases tax from 2026 by 15%, then from 2027 increases annually by 5% each year so that by 2030 the special consumption tax rate on beer is 100%. The drafting agency is inclined to choose PA2.
Delegates attending the workshop.
Providing comments on the draft Special Consumption Tax (amended) at the workshop "Consulting to complete the Draft Special Consumption Tax" on March 18, the report "Assessing the impact of the proposal to increase Special Consumption Tax on beer" pointed out the limitations of PA1 and PA2 in the draft law. This report was jointly researched by the Institute of Industry and Trade Policy and Strategy - Ministry of Industry and Trade; Vietnam Beverage Research Institute; Central Institute for Economic Management Research, General Statistics Office (Ministry of Finance).
The report stated that the impact assessment in the draft law is not comprehensive, mainly based on feelings and qualitative comments. These assessments are sketchy and simplistic in terms of increasing taxes to increase state budget revenue; separating the beer industry into a single operation without placing it in an inter-sectoral relationship.
PA3 proposed by the Beer - Alcohol - Beverage Association (VBA) (postponing the tax increase until 2027, increasing the tax at 5%/2 years and maintaining it at 80% in 2031) is a PA that ensures harmony for all parties, suitable for the economic context and business situation. Thereby helping businesses to be able to survive, adapt and adjust; mitigate excessive negative impacts on the beer industry and related industries, thereby contributing to socio-economic development.
The research team proposed to choose PA3 because they believe that, in recent times, beer businesses have been continuously affected by pandemic shocks and unpredictable fluctuations. The government needs to focus on policies to support business recovery; amend and supplement legal documents in a way that facilitates businesses.
“The results of measuring the economic impact of tax increase PAs show that PA3 achieves better harmony in terms of objectives. Specifically, the negative impact on the economy is at a lower level than PA1 and PA2; ensuring a relative level of policy stability for businesses to adapt and maintain production and business activities.
At the same time, it limits risks affecting workers' employment opportunities and income, and thus social security issues," the report emphasized.
According to the report, PA1 resulted in a total loss of VND10,909 billion to the economy; PA2 caused a loss of VND14,605 billion and PA3 reduced it by VND7,053 billion. Therefore, in terms of economic efficiency, PA3 had the lowest impact on the economy.
PA3 helps limit trends that go against development. That is, it increases the opportunity for consumers to choose high-quality beer products at reasonable prices; limits businesses from adjusting their production and business activities towards expanding the segment of lower-quality products; and limits the opportunity to develop unregistered products that are not controlled for quality.
Ha Anh
Source: https://doanhnghiepvn.vn/kinh-te/chinh-sach/phuong-an-nao-bao-dam-hai-hoa-cho-mat-hang-bia-khi-sua-doi-luat-thue-tieu-thu-dac-biet/20250318102620606
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