07 groups of policies to amend the Law on Special Consumption Tax approved by the Government of Vietnam

07 groups of policies to amend the Law on Special Consumption Tax approved by the Government of Vietnam

The Government of Vietnam basically agreed with 07 policy groups, including:

(1) Improvement of regulations on subjects to special consumption tax;

(2) Improvement of regulations on subjects not subject to special consumption tax;

(3) Improvement of regulations on the basis for calculating special consumption tax;

(4) Improvement of regulations on the price for calculating special consumption tax;

(5) Improvement of regulations on the special consumption tax rate;

(6) Improvement of regulations on the refund of special consumption tax;

(7) Improvement of regulations on the execution provisions.

The Ministry of Finance of Vietnam will take the lead, cooperate with the Ministry of Justice, the Government Office, and relevant ministries and agencies to study and fully absorb opinions from members of the Government of Vietnam with the following requirements:

- Study to fully institutionalize the guidelines of the Communist Party and the State's policies on improving the special consumption tax policy to regulate consumption in line with societal consumption trends, aimed at protecting public health and the environment, ensuring reasonable resource mobilization for the state budget, and in line with international tax reform trends. Amendments to the Law must ensure the resolution of issues and inadequacies in the practical implementation of the Law.

- For policies and solutions related to adding subjects to special consumption tax, close coordination with relevant ministries and agencies to conduct a thorough study and evaluation, adding scientific and practical bases to increase persuasiveness and consistency with related laws.

- For policies to improve regulations on the basis for calculating tax and the special consumption tax rate, develop a mixed tax calculation method (percentage rate and absolute tax amount) for alcohol and beer according to the Prime Minister's Tax System Reform Strategy by 2030, in line with international tax reform trends;

Develop solutions to increase the special consumption tax rates on alcohol, beer, and cigarettes at appropriate levels, following a roadmap to ensure that the special consumption tax targets production orientation and limits the use of health-damaging products.

- For other policies and solutions regarding subjects not subject to tax, the basis for calculating tax, price for tax calculation, special consumption tax refund, etc., base on the goals and requirements for amending and supplementing these regulations, closely follow the Prime Minister’s Tax System Reform Strategy by 2030, aligning with international practices, ensuring that the proposed solutions are feasible, resolving obstacles, and are consistent with related laws.

- During the drafting phase of the Law project, the Ministry of Finance will continue to thoroughly research the proposal contents, supplement scientific and practical evaluations, especially regarding proposals for adding subjects to tax, amending tax calculation methods, increasing special consumption tax rates;

Widely seek opinions, especially from those affected by the policies; actively consult organizations, experts, and scientists; effectively cooperate with relevant ministries and agencies; strongly promote policy communication to create high consensus among the public and businesses.

Assign the Ministry of Finance to complete the Proposal for Law Development dossier, submit it to the Ministry of Justice before August 15, 2023, to be integrated into the Government's Proposal for the National Assembly's 2024 Legal and Ordinance Development Program, presented for the National Assembly’s opinion at the 7th session (May 2024) and approval at the 8th session (October 2024).

Assign the Minister of Justice, authorized by the Prime Minister of Vietnam, to sign the Government's proposal before August 25, 2023, to report to the Standing Committee of the National Assembly on the Government's proposal to supplement the 2024 Legal and Ordinance Development Program as stipulated in the Law on Promulgation of Legal Documents.

Assign Deputy Prime Minister Le Minh Khai to direct the development of this Law.

See more at the Resolution 115/NQ-CP dated July 28, 2023.

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