Huge tax hikes: Vietnam proposes phased 100% alcohol tax rise, 10% for sugar-sweetened drinks

Vietnam is well-known for having very affordable alcoholic beverage prices, with beers in particular costing well below US$1 at most supermarkets and eateries. The local government believes that such affordable prices have contributed to high consumption amongst consumers, and that it is now necessary to increase taxation on these drinks to ensure public health is not compromised. “Higher taxation is necessary in order to reduce the consumption of alcohol in Vietnam,”​ the local Ministry of Finance said via a formal statement outlining its new draft regulations. “The current tax law levies an excise tax of 65% on liquors with 20% ABV and above; 35% for drinks below 20% ABV and 65% for beers – these would be increased to 80%, 50% and 80% respectively under the new regulations in the short term by 2026.​ “The plan is to gradually increase these taxes to 100%, 70% and 100% eventually by 2030 – all of these are in line with World Health Organisation (WHO) recommendations to increase ...