HANOI (Reuters) – Vietnam’s Finance Ministry has proposed to hike a particular consumption tax on alcoholic drinks to 100% by 2030, the ministry mentioned, a transfer which will additional damage the nation’s beverage trade.
Below the draft proposal which is pending lawmakers’ approval, the particular consumption tax on beer and robust liquor might be raised to 70%-80% by 2026 and step by step enhance it to 90%-100% in 2030, in contrast with the present 65%.
“Alcoholic drinks and beer prices will increase by 20% in 2026, compared with 2025,” the finance ministry mentioned within the proposal, including that costs would proceed to extend by 2%-3%, relying on inflation.
“Levying high tax rates is necessary to help reduce consumption of alcoholic drinks,” it added.
Vietnam’s beer trade has already been hit by the nation’s strict drink driving regulation, beneath which the alcohol content material restrict for drivers is zero since 2019.
Final 12 months, beer trade income decreased by 11% and earnings decreased by 23%, in accordance with estimations of the Beer – Alcohol – Beverage Affiliation.
Shares in Sabeco, Vietnam’s largest brewer, fell by 3.96% on Friday morning after the ministry’s proposal.
The finance ministry additionally proposed a hike in particular consumption tax on smooth drinks and cigarettes.
