Alcoholic beverages in Vietnam may be subject to up to 100% excise tax by 2030

Proposal: Alcoholic beverages in Vietnam may be subject to up to 100% excise tax by 2030 (Internet image)

Alcoholic beverages in Vietnam may be subject to up to 100% excise tax by 2030

According to Article 8 of the Draft Law on excise tax (amended) on the excise tax schedule, the proposal is as follows:

(1) For Alcohol

Alcohol as defined by the Law on Prevention and Control of Harms of Alcoholic Beverages 2019, includes other alcoholic beverages fermented from fruits, grains, and beverages prepared from food-based alcohol.

* Alcohol with 20 degrees or higher:

There are 02 proposed options as follows:

- Option 1 :

+ From 2026: 70% tax rate

+ From 2027: 75% tax rate

+ From 2028: 80% tax rate

+ From 2029: 85% tax rate

+ From 2030: 90% tax rate

- Option 2 :

+ From 2026: 80% tax rate

+ From 2027: 85% tax rate

+ From 2028: 90% tax rate

+ From 2029: 95% tax rate

+ From 2030: 100% tax rate

* Alcohol below 20 degrees:

There are 02 proposed options as follows:

- Option 1 :

+ From 2026: 40% tax rate

+ From 2027: 45% tax rate

+ From 2028: 50% tax rate

+ From 2029: 55% tax rate

+ From 2030: 60% tax rate

- Option 2 :

+ From 2026: 50% tax rate

+ From 2027: 55% tax rate

+ From 2028: 60% tax rate

+ From 2029: 65% tax rate

+ From 2030: 70% tax rate

(2) For Beer

For beer, the Draft Law on excise tax (Amended) also proposes 02 options for excise tax as follows:

- Option 1 :

+ From 2026: 70% tax rate

+ From 2027: 75% tax rate

+ From 2028: 80% tax rate

+ From 2029: 85% tax rate

+ From 2030: 90% tax rate

- Option 2 :

+ From 2026: 80% tax rate

+ From 2027: 85% tax rate

+ From 2028: 90% tax rate

+ From 2029: 95% tax rate

+ From 2030: 100% tax rate

Thus, from the proposed provisions of the Draft Law on excise tax (Amended), the excise tax rate for alcohol and beer has significantly increased over the years, and by 2030, alcohol (above 20 degrees) and beer could be taxed up to 100% if the Draft Law on excise tax (Amended) is approved.

Taxpayers of excise tax under the current regulations in Vietnam

According to Article 4 of the Law on excise tax 2008, taxpayers of excise tax are regulated as follows:

Taxpayers of excise tax are organizations and individuals producing, importing goods, and providing services subject to excise tax.

In cases where organizations and individuals engaged in export business purchase goods subject to excise tax from production facilities for export but do not export and consume domestically, the organizations and individuals engaging in export business are the ones paying excise tax.

Subjects of excise tax under the current regulations in Vietnam

According to Article 2 of the Law on excise tax 2008(Amended and Supplemented 2016), the subjects of excise tax are as follows:

- Goods:

+ Cigarettes, cigars, and other tobacco products used for smoking, inhaling, chewing, sniffing, and sucking;

+ Alcohol;

+ Beer;

+ Automobiles with less than 24 seats, including those designed for both passenger and cargo with two or more rows of seats, with a fixed partition between the passenger and cargo areas;

+ Motorcycles with a cylinder capacity of over 125cm^3^;

+ Aircraft, yachts;

+ Various types of gasoline;

+ Air conditioners with a capacity of 90,000 BTU or below;

+ Playing cards;

+ Votive papers and votive goods.

- Services:

+ Nightclub business;

+ Massage, karaoke business;

+ Casino business; prize-winning electronic games including jackpot machines, slot machines, and similar types;

+ Betting business;

+ Golf business, including selling memberships and golf tickets;

+ Lottery business.

Le Nguyen Anh Hao

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