The proposal to postpone for at least two years the increase in the excise tax on alcohol and beer

DNHN - At the workshop "Vietnam's Beverage Industry Recovers and Develops Under New Normal Conditions," it was suggested that the government and the National Assembly wait at least two years before changing the Law on Special Consumption Tax (Special Consumption Tax) to raise taxes on alcohol and beer. This would make it easier for businesses.

Even though businesses have a lot of potentials, it will take them many years to get back on their feet.

The Vietnam Beer-Alcohol-Beverage Association (VBA) put on a seminar on May 6 called "Vietnam's beverage industry recovers and grows under new normal conditions." It was held in the morning.

The effects of social distancing measures from the COVID-19 pandemic and specialized management policies, especially Law No. 44/2019/QH14 on the Prevention and Control of Harmful Effects of Alcohol and Beer with comprehensive restrictions on advertising, promotion, production, and business, and Decree 100/2019ND-CP setting administrative sanctions in the field of transportation, caused serious damage to the product, according to VBA.

The market for drinks has dropped by 20–30%, and the revenue of the entire beverage industry has dropped by 16% compared to 2019. Recently, the conflict between Russia and Ukraine has caused a crisis in the global supply chain that is getting worse. More importantly, the problems in the beverage business led to a sharp rise in the price of fuel.

Due to the issues, companies will take years to return to pre-pandemic levels. This year and in the years to the future, the COVID-19 pandemic's harmful impacts will be seen in every aspect of social life. "VBA noted that the possibility of significant global inflation reduced demand for goods, affecting all manufacturing, business, tourist, and service sectors."

The way the excise tax is calculated adds to the cost of being a member of society.

VBA is worried about a proposal to raise excise taxes on several products, such as alcoholic drinks and cigarettes. VBA thinks that now is the right time to do this because it will protect people's health, bring in more money for the budget, and reduce other negative effects on society.

Many experts believe that proposals to increase excise taxes on particular items, such as alcoholic beverages, should be thoroughly considered and examined. Before making a choice, consider the social and economic implications, including unforeseen repercussions and vulnerable groups like jobs, farmers, and farmers. Implementation time is also critical for firms to recover from the epidemic.

VBA wants the government to pay attention and think about the right financial policies to help beverage businesses get back on their feet after being hurt for a long time by the COVID-19 pandemic.

Changes in tax policy could make it harder for the government to improve the investment environment, make the country more competitive, and get involved in bilateral and multilateral free trade agreements. This could slow down Vietnam's development. Because of this, it's important to think carefully about policies that add more work for businesses, at least for the next few years.

At the workshop, a representative from the company HEINEKEN Vietnam said that the VBA should ask the government and the National Assembly to delay for at least two years any changes to the E-CIT Law that would raise taxes on alcohol and beer.

Instead, it is important to figure out how the policy to raise excise taxes, the measures to limit the amount of alcohol and beer people drink, and the effects of the COVID-19 epidemic have affected production and business in the industry. short-and long-term effects of drinking alcohol.

According to a representative of HEINEKEN Vietnam, the SCT Law that applies to alcohol and beer is mostly changed by increasing the tax rate percentage based on the roadmap, rather than changing the tax rates based on the amount of alcohol in the drink. The different ways that each product sector helps the economy and encourages responsible consumption.

"We think that the way taxes are calculated based on the amount of alcohol is fairer, more open, and easier to predict." It also helps the state budget grow more sustainably and efficiently. " A value-based tax would make the economy more competitive and stop people from drinking too much alcohol and beer.

Even though Vietnam's excise tax law has had a way to calculate taxes based on the price of "ex-factory" for a long time, this only encourages people to buy cheap products and then forget about them, which raises the cost of the social burden. The HEINEKEN Vietnam representative said that the real danger comes from the amount of alcohol in the body.

Thanh Nga