Continue to improve the Law on Special Consumption Tax (amended)

In addition to the agreed provisions on non-taxable subjects, tax rates, and enforcement..., the Draft Law on Special Consumption Tax (amended) still has some contents that need to be further considered.

In addition to the agreed provisions on non-taxable subjects, tax rates, and enforcement..., the Draft Law on Special Consumption Tax (amended) still has some contents that need to be further considered.

Afternoon session of the National Assembly Standing Committee on March 10.

Continuing the 43rd session, on the afternoon of March 10, the National Assembly Standing Committee gave opinions to explain, accept and revise the Draft Law on Special Consumption Tax (amended).

Reporting the summary of the basic contents, Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai said that many contents related to regulations on non-taxable subjects, tax rates, and enforcement effectiveness... have been unanimously explained and accepted by the Standing Committee of the Committee and the Drafting Agency (Ministry of Finance).

Regarding some content with different opinions, related to tax rates and tax levels, for sugary soft drinks, Mr. Mai reflected that during the discussion, some opinions suggested considering a higher tax rate. Some opinions suggested that there should be a roadmap for businesses to adjust their production and business plans.

The Standing Committee of the Review Committee believes that sugary soft drinks are a new item proposed to be added to the taxable category. The tax rate is set at a reasonable level to gradually limit the use of products with high sugar content and encourage businesses to produce soft drinks with low sugar content.

Therefore, taking into account the opinions of the delegates, the Standing Committee of the Appraisal Agency proposed to consider the option of postponing the tax imposition on this product by about 1-2 years compared to the expected deadline in the Draft Law or applying it according to the roadmap. This option still ensures the implementation of the policy objectives but is more flexible to create conditions for businesses to have time to adjust their production and business plans, Mr. Mai explained.

The drafting agency would like to keep the draft law as it is because it believes that this is a new item proposed to be added to the taxable objects, and the 10% tax rate is reasonable to encourage businesses to produce soft drinks with low sugar content, as well as raise consumer awareness. After the implementation period, it will summarize and study proposals that are consistent with international practice and experience, said Chairman Phan Van Mai.

Regarding pickup trucks, during the discussion, some opinions suggested considering the appropriate roadmap and increase; considering and clarifying the basis for proposing a tax rate of 60% for regular cars...

The Standing Committee of the Economic and Financial Committee believes that, according to current regulations, the special consumption tax policy for this type of vehicle is much more favorable than for other types of cars. However, this is a type of vehicle with a 25-year usage period, if the special consumption tax rate as in the Draft Law is applied, it may affect the production and business activities of enterprises. Therefore, it is proposed to take into account the opinions of delegates, consider the option of postponing the tax imposition by 1-2 years compared to the expected period in the Draft Law or apply it according to the roadmap so that enterprises have time to adjust their production and business plans.

Meanwhile, the Drafting Agency believes that double-cabin cargo pickup trucks with a permitted cargo weight of less than 950 kg are considered passenger cars and are allowed to participate in traffic and circulate in urban areas in terms of time and on lanes similar to passenger cars with 9 seats or less. At the same time, according to current regulations on fees and charges, the first registration fee for double-cabin cargo pickup trucks is 60% of the first registration fee for passenger cars with 9 seats or less.

To contribute to ensuring the use of cars for both passenger and cargo transportation in accordance with the design goals, limit traffic congestion, avoid taking advantage of policies and ensure fairness, consistency and synchronization between regulations on tax policies and fees, the Drafting Agency proposes to keep the Draft Law.

Regarding the tax rate for hybrid cars, Mr. Mai said that there are opinions suggesting not to discriminate between preferential tax rates between hybrid cars and cars with separate electric charging systems. There are opinions suggesting that the tax rate for cars with external charging systems should be reduced from 70% to 50% compared to cars with internal combustion engines, etc.

Mr. Mai reported that the current Law stipulates a preferential tax rate to be applied to both internal and external charging vehicles. In practice, there have been no problems. Therefore, the Standing Committee of the Review Committee proposed to revise the Draft Law in the direction of keeping the provisions of the current Law to avoid causing difficulties for businesses. Accordingly, tax incentives are provided for vehicles running on gasoline combined with electric power if the condition is met that the proportion of gasoline used does not exceed 70% of the energy used.

The drafting agency proposed to keep it as in the Draft Law because it believes that gasoline-powered vehicles combined with electric power without a separate charging system (HEV) are gasoline-powered vehicles that affect the environment, not "gasoline-powered vehicles combined with electric power", so they are not subject to preferential tax rates.

The Standing Committee of the Economic and Financial Committee continues to coordinate with the Drafting Agency to clarify the current regulations being applied in practice to gasoline-electric vehicles, with and without separate charging systems, clarifying policy objectives to jointly determine the plan to complete the draft Law, Mr. Mai stated.

In addition, according to Mr. Mai, there are opinions suggesting that the Government needs to have a clear viewpoint on whether or not to allow the import, production, and trading of new generation cigarettes to be stipulated in the Draft Law.

Mr. Mai explained that Resolution No. 173/2024/QH15 of the National Assembly stipulates the prohibition of production, trading, import, storage, transportation, and use of electronic cigarettes and heated tobacco products... Therefore, accepting the opinions of delegates, the Standing Committee of the Review Committee proposed to remove the content of Article 12 of the draft Law.

The drafting agency proposed to keep the Draft Law as it is to ensure the establishment of a full legal basis for implementation in special cases where new tobacco products are allowed to be imported, produced, and traded, Mr. Mai reported to the National Assembly Standing Committee.

Source: https://baodautu.vn/tiep-tuc-hoan-thien-luat-thue-tieu-thu-dac-biet-sua-doi-d251769.html