Vietnam proposes alcohol tax hike to 100% by 2030

Vietnam’s Finance Ministry has announced plans for a phased tax hike on alcohol, a decision which will likely be a crushing blow to the country’s already struggling beer sector. The Vietnamese government has drafted new regulations proposing a phased increase in excise taxes for all alcoholic beverages, with particularly harsh measures set out for beer and liquor with an ABV of 20% and above. “Levying high tax rates is necessary to help reduce consumption of alcoholic drinks,” the finance ministry said in the proposal. “Alcoholic drinks and beer prices will increase by 20% in 2026, compared with 2025,” it said, according to Reuters. This does not account for a potential further increase of 2%-3%, depending on inflation. The current tax law levies a 65% excise tax on liquors with an ABV of 20% or above. Drinks with an ABV below 20% have an excise tax of 35%, and beer has its own excise tax also at 65%. Under the new regulations, these would increase to 80%, 50% and 80% respectively ...