Soft drinks may be levied Special Consumption Tax

VCN- This is one of remarkable contents of projects of amending and supplementing a number of articles of Law on Value added tax, Law on Special consumption tax, Law on Corporate income tax, Law on Personal income tax and Law on Natural resources tax, which was announced by the Ministry of Finance on 15th August 2017.
special consumption tax may be levied on sugary drinks Law on Import and Export Duties 2016 should be guided more clearly
special consumption tax may be levied on sugary drinks Add more conditions for special consumption tax deduction
special consumption tax may be levied on sugary drinks Calculation of special consumption tax and tax for automobile spare parts to be adjusted
special consumption tax may be levied on sugary drinks

The Ministry of Finance proposes to impose Special consumption tax rate of 10% on industrially produced soft drinks.

Mr. Pham Dinh Thi- Director of Tax policy Department- Ministry of Finance said that sugary drinks are popular with many people. However, the use of sugary drinks would increase energy to body, causing the weight gain, obesity and other bad effects on health including cardiovascular disease and diabetes.

In Vietnam, the rate of adults who are overweight and obese accounts for 25% of the population. The rate of less than 5-year children who were obese increased rapidly from 0.6% in 2000 to 5.3% in 2015, in Ho Chi Minh City, the rate was 10.8%, (especially in the central region up to 12%) higher than the average rate of the Asian and developing countries (while the global average rate was 6.9%).

According to statistics in 2010, the obesity rate of children from 5 to 19 years old was also quite high. The average rate of this group was 8.5%; 18.2% in the city; 7.9% in rural areas. However, in big cities like Ho Chi Minh, this rate was very high at 34.5%.

Overweight and obesity are causes for many non-communicable diseases such as cardiovascular diseases, hypertension, stroke, atherosclerosis and coronary artery, and risk of type 2 diabetes and some cancers like gallbladder, breast, colon, prostate and kidney.

According to research by the World Health Organization (WHO), the abuse of soft drinks will lead to obesity and diabetes. According to the Victorian Health Promotion Foundation, (Australia), many studies have shown that the use of soft drinks will cause the weight gain, obesity and other bad effects on health including cardiovascular disease and diabetes.

Therefore, in order to orient and restrict the consumption of sugary drinks, countries in the region have levied Special Consumption Tax on the soft drinks. Specifically, Thailand regulates that the SCT levied on fizzy drinks without alcohol is 25% or US$ 0.024 per 440cc- bottle; on fizzy drinks is 20% or US$ 0.011 per 440cc-bottle; Laos regulates that SCT levied on fizzy drinks without alcohol is 5% and energy drink is 10%; Cambodia regulates that SCT levied on soft drinks is 10%.

According to the ASEAN Secretariat, other three ASEAN countries is expecting and considering to impose the Special Consumption Tax on the soft drinks: Myanmar expects to impose a tax rate of 5%; Philippines expects to impose a tax rate of 10 pesos per liter; Indonesia expects to impose a tax rate of Rs 3,000 per liter on fizzy soft drink.

special consumption tax may be levied on sugary drinks Add more conditions for special consumption tax deduction

VCN - On 6th March 2017, the Ministry of Finance issued Circular No. 20/2017/TT-BTC amending and supplementing ...

Hence, most countries in the region have levied Special Consumption Tax on the soft drinks. European countries levy higher tax rate such as France € 0.72 per liter, Finland € 0,075 per liter, Hungary € 0.04 per bottle or 1 can, Netherlands $US 0.09 per liter and etc.

According to Mr. Thi, from the above studies and also to regulate the consumption of the soft drinks in accordance with international practice, the Ministry of Finance proposed to add soft drinks including fizzy drink, still drink, energy drink, sports drink, tea, instant coffee which are procedure by industrial production lines, excluding fruit juice, 100% natural fruit juice, milk and milk products to commodities subject to Special Consumption Tax .

Regarding to tax rates, the Ministry of Finance expects to impose a 10% tax rate from 2019. However, it also provides the second plan to impose the tax rate of 20% from 2019 to consult widely.

By Hong Van/Ngoc Loan

Related News

GDVC assigns minimum targets for overdue tax debt collection and settlement in 2024 to customs departments

GDVC assigns minimum targets for overdue tax debt collection and settlement in 2024 to customs departments

VCN – The General Department of Vietnam Customs (GDVC) has decided to assign targets for overdue tax debt collection and settlement in 2024 for 27 customs departments.
Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

VCN - Scrap is a sensitive item with many potential risks of environmental pollution, directly affecting human health and the ecosystem. Therefore, strict management measures are needed to avoid the risk that Vietnam become a scrap gathering country in the world.
Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

VCN - That was the direction of Deputy Minister of Finance Nguyen Duc Chi at a working session with leaders of the Provincial People's Committee and the Lang Son Departments of Finance, Tax, and Customs on March 19.
Why not reduce export tax on fertilizer products to 0%?

Why not reduce export tax on fertilizer products to 0%?

VCN - Clarifying a number of contents related to the draft Decree amending and supplementing a number of articles of Decree No. 26/2023/ND-CP on Preferential Export Tariffs, Import Tariffs, List of Goods and Rates Absolute tax, mixed tax, import tax outside the tariff quota regarding the export tax rate for some types of fertilizers, the Ministry of Finance has clarified the reason why it does not adjust the export tax rate for this product.

Latest News

Vietnam seeks to remove obstacles in upgrade of securities market

Vietnam seeks to remove obstacles in upgrade of securities market

The State Securities Commission of Vietnam (SSC) recently held an online working session with the World Bank (WB) and the Asia Securities Industry and Financial Markets Association (ASIFMA) to discuss ways to remove obstacles related to criteria for upgrading the Vietnamese securities market.
Price stability from supply increase and transparency in trading in gold market

Price stability from supply increase and transparency in trading in gold market

VCN - To stabilize the gold market, economic expert Prof.Dr. Tran Tho Dat, a member of the Prime Minister's Economic Advisory Group, said that it is necessary to implement solutions to make all transactions transparent in the gold market, implement electronic invoices as well as pay taxes in gold investment activities.
SBV takes more actions to stabilise foreign exchange rates

SBV takes more actions to stabilise foreign exchange rates

The State Bank of Vietnam (SBV) on April 23 took some moves like issuing treasury bills (T-bills), further employing T-bills as an open market operation (OMO), and stipulating liquidity and interest rates in the inter-bank market in the face of surging USD/VND exchange rates.
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

VCN - The revised Draft Law on Value Added Tax (VAT), besides inheriting many provisions from the current Law, also revises and supplements several contents to suit the actual situation, including some notable contents in VAT refund.

More News

Corporate bond maturity in 2024 remains high: MoF

Corporate bond maturity in 2024 remains high: MoF

The volume of corporate bonds maturing in 2024, though lower than that in 2023, is till at a high level, mostly in industries with payment risks such as real estate and renewable energy, according to a report by the Ministry of Finance (MoF).
Support clearance procedures for imported gold for bidding

Support clearance procedures for imported gold for bidding

VCN - The State Bank (SBV) has sent a document to competent ministries and branches requesting coordination in implementing the Prime Minister's direction in gold market management.
The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low

The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low

VCN - According to forecasts, Vietnam's financial sector in 2024 will be more positive, with the exchange rate gradually cooling down from the end of the second quarter of 2024, while interest rates will remain low to promote growth.
Majority of credit institutions forecast profit growth in 2024

Majority of credit institutions forecast profit growth in 2024

A total of 86.2% of credit institutions expect their profit this year to grow compared to 2023, according to the latest survey of the State Bank of Vietnam (SBV).
Central bank plans to auction gold bars on April 22

Central bank plans to auction gold bars on April 22

The State Bank of Vietnam (SBV) will auction SJC-branded gold bars on April 22, a representative of the central bank said on April 19.
Old loans must endure higher interest rates temporarily: central bank

Old loans must endure higher interest rates temporarily: central bank

The average lending interest rate for new loans by commercial banks is reported at around 6.4% per year, a decrease of 0.7 percentage point per year compared to the end of last year. However, borrowers with loans issued before the latest rate adjustment still must pay higher rates, according to the State Bank of Vietnam (SBV).
State-owned enterprises flourished

State-owned enterprises flourished

VCN - The production and business situation in the first quarter of 2024 of the state-owned enterprise sector continues to have many bright spots with many financial targets completed or exceeding the set plan. This is the premise for positive business results in the second quarter and the whole year 2024.
Forum discusses support for women-owned firms ​to join supply chains

Forum discusses support for women-owned firms ​to join supply chains

A forum on supporting women-owned businesses to join supply chains through sustainable development tools took place in Hanoi on April 17.
Ensure savings and prevent losses in disbursement of public investment

Ensure savings and prevent losses in disbursement of public investment

VCN - The practice of thrift and combating waste in the management and use of public investment is one of key tasks in the program of thrift practice and waste combat in 2024 of the Ministry of Finance.
Read More

Your care

Latest Most read
Vietnam seeks to remove obstacles in upgrade of securities market

Vietnam seeks to remove obstacles in upgrade of securities market

The State Securities Commission of Vietnam (SSC) recently held an online working session with the World Bank (WB) and the Asia Securities Industry and Financial Markets Association (ASIFMA) to discuss ways to remove obstacles related to criteria for upgrading the Vietnamese securities market.
Price stability from supply increase and transparency in trading in gold market

Price stability from supply increase and transparency in trading in gold market

VCN - To stabilize the gold market, economic expert Prof.Dr. Tran Tho Dat, a member of the Prime Minister's Economic Advisory Group, said that it is necessary to implement solutions to make all transactions transparent in the gold market, implement electr
SBV takes more actions to stabilise foreign exchange rates

SBV takes more actions to stabilise foreign exchange rates

The State Bank of Vietnam (SBV) on April 23 took some moves like issuing treasury bills (T-bills), further employing T-bills as an open market operation (OMO), and stipulating liquidity and interest rates in the inter-bank market in the face of surging USD/VND exchange rates.
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

The revised Draft Law on Value Added Tax (VAT) also revises and supplements several contents to suit the actual situation, including some notable contents in VAT refund
Corporate bond maturity in 2024 remains high: MoF

Corporate bond maturity in 2024 remains high: MoF

The volume of corporate bonds maturing in 2024, though lower than that in 2023, is till at a high level, mostly in industries with payment risks such as real estate and renewable energy, according to a report by the Ministry of Finance (MoF).
Mobile Version