The World Financial institution has beneficial that Vietnam undertake a 155 p.c particular consumption tax on alcoholic drinks, warning that the nation’s rising alcohol-related deaths and sicknesses have gotten a public well being concern.
In a consultancy report, the group urged that Vietnam’s Ministry of Finance implement a further tax of VND 16,500 (USD 0.65) per liter of alcohol on high of the present 65 p.c tax per product.
The report highlighted that alcohol-related deaths in Vietnam are actually 140 p.c greater than the typical in lower-middle-income international locations—a stark distinction to 1990 when Vietnam’s determine was 59 p.c under common.
Information from the World Financial institution additional reveals that alcohol consumption in Vietnam surged by 177 p.c between 2008 and 2022, regardless of a earlier tax enhance on beer from 45 p.c to 65 p.c. This means that the sooner tax hikes had been inadequate to considerably curb alcohol consumption, the report added.
Nevertheless, the Ministry of Finance has expressed reservations in regards to the World Financial institution’s suggestion, arguing that such a excessive tax fee is probably not appropriate for Vietnam presently.
As a substitute, on 14 June, the ministry submitted a draft regulation to the federal government proposing extra gradual amendments to the excise tax on alcohol, sugary drinks, and tobacco. These amendments are a part of Vietnam’s broader technique to advertise more healthy existence, as outlined within the Nationwide Vitamin Technique for 2021-2030 and the Nationwide Plan for the prevention and management of non-communicable illnesses and psychological issues for 2022-2025.
The ministry’s proposal suggests rising the particular consumption tax on wine with an alcohol content material of 20 p.c or extra from the present 65 p.c to 90 p.c or one hundred pc by 2026-2030.
For wines with decrease alcohol content material, the tax would rise from 35 as much as 70 p.c, and the tax on beer would enhance from 65 to 90 or one hundred pc. The ministry estimates these modifications may increase authorities revenues by VND 10.7 trillion (USD 424.3 million) yearly.
Regardless of these proposals, the World Financial institution has criticized the gradual method as insufficient for considerably decreasing alcohol consumption, highlighting the necessity for extra aggressive measures to deal with Vietnam’s rising alcohol-related well being points.
