Formulating the tax increase roadmap for wine, beer, and tobacco by 2030

The Prime Minister has just issued Decision 508/QĐ-TTg in 2022g approving the Tax System Reform Strategy to 2030.

Formulate a roadmap for adjusting the increase of tax on tobacco, beer, or wine?

Pursuant to Article 1 of the Decision No. 508/QD-TTg dated April 23, 2022 on tax policy reform with respect to special sales tax; Accordingly, it is necessary to review, amend and supplement subjects liable to special consumption tax in order to regulate consumption in line with the change in the trend of consumption in society and orientations of the Party and State on protection of people's health and environmental protection; to work out a roadmap for tax increase for tobacco, beer, liquor commodities in order to limit production and consumption and implement international commitments; to review and adjust special consumption tax rates for a number of commodity items in line with socio-economic conditions during 2021-2030; to study the application of combined tax rates according to specific rates and fixed tax rates for a number of commodities and services subject to special consumption tax.

Formulating the tax increase roadmap for wine, beer, and tobacco by 2030

Formulating the tax increase roadmap for wine, beer, and tobacco by 2030

Applying a certain tax rate?

- Pursuant to Article 1 of Decision No. 508/QD-TTg dated April 23, 2022 stipulating the reform of tax policy for value added tax; Specifically, with respect to value-added tax, the expansion of tax bases through reducing groups of goods and services not subject to value-added tax and groups of goods and services subject to the tax rate of 5%; proceeding to basically apply a tax rate; studying the increase of value-added tax rate according to the set schedule; reviewing and adjusting the turnover applying the credit method to suit the practical situation; studying the uniform application of the tax calculation method based on the percentage of turnover to taxpayers that have turnover below the threshold or are not eligible for the application of the credit method.

- Additionally, complete the regulations related to VAT on exported goods and services, ensure the correct nature and conformity with international practice. Amend and supplement regulations on tax deduction and VAT refund towards simplicity, transparency and consistency with relevant regulations of law.

Reduction of export and import duties?

- Pursuant to Article 1 of the Decision No. 508/QD-TTg dated April 23, 2022, with regard to import and export duties, the import tariff shall be simplified.

- Studying the revision and supplementation of policies on import and export duties to promote export, encourage domestic value added, limit the export of natural resources and crude minerals; having appropriate incentive policies to promote the development of spearhead industries, supporting industries and areas of priority in accordance with the orientations of economic - social development of the country in each period and international commitments. Amendments to regulations on on-the-spot exports and imports and relevant regulations on free trade zones in accordance with relevant regulations of law, limiting trade frauds and tax evasion.

Therefore, the tax system reform strategy by 2030 will formulate a roadmap for adjusting tax increase for tobacco, beer and liquor products in order to limit production, consumption and implement international commitments. At the same time, to amend and supplement policies related to value added tax, import and export taxes to make them compatible with the current socio-economic development orientations of our country.

Khanh Linh

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