Ministry of Health Proposal to impose an excise tax on sugary drinks

DNHN - Recently, at the Scientific Conference on the consumption of sugary drinks on health, the impact of tax and price policies organized by the Ministry of Health, it was proposed that sugary drinks be subject to a special consumption tax.

According to historical data, the growth rate of consumption of fruit juices, beverages, energy drinks, and instant teas has been very high over the past decade, and it is anticipated that this growth rate will exceed 5% after the next five years. According to the data presented above, the consumption of sugary beverages will continue to contribute to the rise in sugar consumption in Vietnam shortly.

According to Mr. Do Xuan Tuyen, Deputy Minister of Health, the rate of overweight and obesity among adolescents aged 5-19 in Vietnam has multiplied over the years (from 2.6% in 2002 to 5-19 years old). 19% in 2020) doubled among adults (from 10.9% in 2002 to 18.3% in 2016), a growth rate that will continue to rise until 2020. Obesity and non-communicable diseases are caused by uncontrolled sugar consumption, particularly the consumption of sugary beverages by both adults and children. "The complex causes of obesity and several non-communicable diseases include the increased consumption of free sugars, particularly from sugary beverages, by both children and adults. In addition to the sugar that occurs naturally in many foods, such as fruit and milk, the addition of sugar to food products will increase the product's total energy content "- Do Xuan Tuyen, Deputy Minister, emphasized.

Regarding the preliminary draft of the policy impact assessment report proposing amendments to the Law on Special Consumption Tax, which regulates the taxation of sugary drinks, the committee recommends that the report be withdrawn. Ms. Tran Thi Trang, Deputy Director of the Ministry of Health's Legal Department, shared The Ministry of Health currently proposes several solutions: The first solution is to impose a special consumption tax on sugary beverages, in addition to other solutions such as education and labeling. Secondly, levy an excise tax on sugary beverages. Thirdly, the State does not intervene in this matter, so the market for sugary drinks and the number of sugary drinks consumed by people remain unchanged. Currently.

The Ministry of Health recommends the first solution because it is the most effective, the heaviest, and the most cost-effective, and provides health benefits to the population. The second solution is effective but not comprehensive. The Ministry of Health also advises against selecting any of the three options - maintain the status quo with increased consumption...

P.V