Legislators debate draft revised Law on Special Consumption Tax
Several NA deputies advocated higher special consumption rates for sugary drinks while other pushed for a phase approach so that enterprises could adjust their production and business plans.
At the 9th session of the 15th National Assembly (Photo: VNA)
Hanoi (VNA) – The National Assembly (NA) is convening a plenum on May 9 morning to look into several bills, including the draft revised Law on Special Consumption Tax.
Following the presentation of an explanatory report on amendments, lawmakers will discuss several contentious issues in the draft.
According to the verification report delivered at the 43rd meeting of the NA Standing Committee, opinions remained divided on appropriate tax rates for sugary drinks. Several NA deputies advocated higher rates while other pushed for a phase approach so that enterprises could adjust their production and business plans.
The verification authority noted that sugary beverages are a new category added to taxable items. It recommended imposing reasonable tax rates to gradually limit the consumption of high-sugar products and encourage manufacturers to produce lower-sugar alternatives. Responding to legislators' concerns, it suggested either delaying the tax imposition by 1–2 years or introducing a tiered taxation schedule, enabling a smoother transition for businesses.
Meanwhile, the drafting body stood by its original proposal, maintaining that the suggested 10% tax rate is appropriate for a newly taxable item. They stated that the move will effectively encourage the production of lower-sugar beverages and raise consumer awareness of sugar consumption, with plans to evaluate the legislation's effectiveness over time and make reality-based proposals.
Regarding the tax rates for hybrid vehicles, the verification authority recommended maintaining current law provisions to avoid difficulties for businesses, specifically proposing tax incentives for gasoline-electric hybrid vehicles if gasoline accounts for no more than 70% of energy used.
Meanwhile, the drafting committee held that the non-plug-in hybrid electric vehicles primarily run on gasoline and harm the environment, and therefore should not qualify for preferential tax rates.
Also in the morning, legislators will consider the draft laws revising and supplementing some articles of the Law on Planning and the Law on Enterprises.
♏ In the afternoon, they will listen to a report on amendments to the draft Law on Digital Technology Industry and discuss several areas of contention./.
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Nghia affirmed that this is a milestone of special significance, affirming and honouring the the Vietnamese revolutionary press’s glorious tradition of 100 years of serving the revolutionary cause of the Party, serving the Fatherland, and serving the people.
The Party and State of Vietnam always attach great importance to and give top priority to the development of Vietnam–China relations. Vietnam is ready to work with the Chinese Party and State to further deepen the Comprehensive Strategic Cooperative Partnership and promote the building of the Vietnam-China community with a shared future that carries strategic significance.
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Minister of Industry and Trade Nguyen Hong Dien welcomed the proposals put forward by the US side and reiterated Vietnam’s request for consideration of key areas of interest, including reciprocal tariff policies and access for Vietnamese key export products to the US market.
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