Vietnam to Raise Special Consumption Tax on Alcoholic Drinks to 100% by 2030

• Vietnam’s Finance Ministry proposes to raise special consumption tax on alcoholic drinks to 100% by 2030.
• The draft proposal is pending lawmakers’ approval.
• Tax on beer and strong liquor to increase to 70%-80% by 2026, and 90%-100% by 2030, from the current 65%.
• Alcoholic drink prices expected to rise by 20% in 2026 compared to 2025, with further increases of 2%-3% depending on inflation.
• The high tax rates aim to reduce consumption of alcoholic drinks.
• Vietnam’s beer industry has been affected by a strict drink-driving law with zero alcohol content limit for drivers since 2019.
• Beer industry revenue decreased by 11% and profits by 23% last year.
• Shares in Sabeco, Vietnam’s largest brewer, fell by 3.96% following the proposal.
• The finance ministry also proposed increasing special consumption tax on soft drinks and cigarettes.

Source: channelnewsasia.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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