Enterprises urge careful consideration to be given to the Ministry of Finance’s proposal to impose a special consumption tax on sugary drinks to ensure harmonisation of benefits between the State, consumers and producers.

The beverage sector has called for a delay in Vietnam’s proposed tax increase on alcohol as the industry is at risk from high inflation, increased material costs, and low demand.

The Vietnamese government is expeditiously offering the business community assistance in the form of tax relief schemes and other payment extensions.

Expanding the tax base and increasing environmental protection tax on non-biodegradable packaging materials would be considered with an aim to limit the use of these materials.

The purpose of delaying these payments is to help manage cash flows. However, businesses are still required to make full payments to the budget deficit.

The Ministry of Finance has proposed slapping higher excise tax on unhealthy products such as cigarettes, beers and alcoholic beverages, and adding sugary drinks to the list as well.

The Ministry of Finance has proposed to apply a special consumption tax on sugar-sweetened beverages to protect people's health following recommendations from the World Health Organisation.

The Ministry of Finance refused to lift the special consumption tax on gasoline at the second extraordinary meeting as the country fights climate change and commits to net zero emissions by 2050.