Ho Chi Minh City proposes to raise Special Consumption Tax for alcohol and beer

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Ảnh minh họa. Nguồn: Internet.

At the beginning of March, media agencies announced the statement of leaders of Ho Chi MinhCity People's Committee on aproposal to increase Special Consumption Tax for alcohol and beer. Before submitting to the People's Council for approval, the city will study carefully and prepare to create a high consensus in society.

Ms. Nguyen ThiThanh Hang- Deputy Director of Tax Policy Department under Ministry of Finance said that the proposal is well grounded.

Ms. Hang stated Resolution 54/2017/QH14 on piloting specific policy for development of Ho Chi Minh City, said that Ho Chi MinhCity People's Committee proposed to the Government to consider and report toNational Assembly Standing Committee for a decision for apilot application of the increase in tax rate for some goods subject to Special Consumption Tax and Environmental Protection Tax. The increase in tax rate shall not exceed 25% of the current tax rate.

“The Ho Chi Minh City’s proposal is reasonable in accordance with the issued Resolution” Ms. Hang said.

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According to Ms. Hang, the increase in the Tax rate is the first step to limit the use of alcohol and beer. This has been specified in the impact assessment report of the draft Law on alcohol and harm prevention.

Ms. Hang said revenue from alcohol in 2017was 342 billion VND and 2018 was 415 billion VND, revenue from beer in 2017 was 43,153 billion VND and 2018 was 32,154 billion VND.