Customers choose wine at a supermarket in Hà Nội. — VNA/VNS Photo Trần Việt

 

The Vietnam Chamber of Commerce and Industry (VCCI) has proposed that the National Assembly's Economic and Financial Committee consider amending the Special Consumption Tax Law to establish a more framework-based, stable and long-term approach.

 

The proposed revision would outline principles for adjusting the maximum tax rate and for expanding or narrowing the range of taxable subjects. Tax policy design should ensure feasibility, practicality and contribute to sustainable economic and social development, according to the VCCI.

 

Given the current challenging economic environment, the VCCI emphasised that any adjustments to tax policies, including the special consumption tax, should be approached with caution and comprehensively evaluated.

 

“Forecasts for 2025 indicate continued global economic complexities and risks, while businesses in various sectors are grappling with a persistent decline in consumer purchasing power and rising input costs,” the VCCI noted.

 

The business community hopes that tax policies will be carefully considered to create more favourable conditions for investment, production and business activities, stimulate consumer demand and expand market opportunities.

 

The VCCI argued that tax policies should be flexible rather than rigid. Tax adjustments should be delegated to the Government, allowing modifications based on actual market developments.

 

It also pointed out that aside from the Special Consumption Tax Law, the alcoholic beverage sector is already facing significant regulatory pressures, including the Law on Prevention and Control of the Harmful Effects of Alcohol and Beer, the Advertising Law, administrative penalties for traffic violations and stringent environmental requirements.

 

While many other goods have benefitted from a reduction in value-added tax (VAT) from 10 per cent to 8 per cent, alcoholic beverages have been excluded from this policy, further increasing cost burdens for businesses.

 

If the special consumption tax continues to rise abruptly, businesses will face even greater difficulties, potentially leading to reduced production, job losses and an increase in the consumption of unregulated products, according to the VCCI.

 

To ensure business adaptability and maintain stable Government revenue, the VCCI suggested that a reasonable tax increase schedule should be adopted, with implementation deferred until 2028 and incremental increases of 5 per cent every two years. — BIZHUB/VNS

 

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