E-Malt.com News article: Vietnam: Excise tax rate on beer to increase to 55% as of January 2016
Vietnam’s excise tax rates on alcohol, beer and tobacco will begin to increase in a year’s time, under the revised Law on Special Consumption Tax, which will take effect on January 1, 2016, Tuoi Tre News reported on December 15.
The law is among the eight laws that were approved by legislators at the 13th National Assembly’s eighth session that closed on November 28.
The Law on Special Consumption Tax has been amended to ensure a stable revenue source for the State’s Budget on the basis of reasonable changes to the tax rates of a number of commodities,
Accordingly, the tax rate on tobacco will be increased from the current 65 percent to 70 percent as of January 1, 2016, and to 75 percent as of January 1, 2019.
Similarly, the tax rate levied on alcohol with 20 percent concentration or higher will be raised to 55 percent as of January 1, 2016, 60 percent as of January 1, 2017 and 65 percent as of January 1, 2018.
Meanwhile, beer will see a tax rate increase from the current 50 percent to 55 percent from January 1, 2016, 60 percent from January 1, 2016, and 65 percent from January 1, 2018.
The special consumption tax is a type of excise tax applied to the production or importation of specific goods and the provision of certain services that are considered luxurious or non-essential.
17 December, 2014