At the workshop “Draft Law on Special Consumption Tax (SCT) (amended) and the beverage industry” chaired by the Vietnam Federation of Commerce and Industry (VCCI), in coordination with the Vietnam Beer-Alcohol-Beverage Association (VBA) on August 8, many experts and subjects directly and indirectly affected... spoke up to contribute to perfecting the draft Law.

According to Ms. Nguyen Thi Cuc - President of the Vietnam Tax Consulting Association (VTCA), the adjustment to increase tax rates on alcoholic beverages in the coming time is necessary and in line with the policies of the Party and the State. However, it is necessary to aim for a special consumption tax policy that harmonizes goals and is appropriate to specific contexts.

Increasing the excise tax rate continuously may not be as effective as the excise tax target. It is possible that increasing the tax rate will increase the selling price and limit the production of alcohol and beer, but it is not certain that it will achieve the goal of reducing the consumption of alcohol and beer because in reality, increasing the tax rate may lead to an increase in smuggled goods, and consumers with high incomes will switch to drinking smuggled alcohol and beer.

Rural consumers with low incomes are more likely to switch to self-sufficiency and profit-making by making and mixing their own wine, not paying special consumption tax , not ensuring product quality, affecting people's health.

Accordingly, the goal of limiting consumption and ensuring public health is difficult to achieve. Consider further research on the impact of rapid and high tax increases according to the draft Law on the market, production and business activities, consumers, and public health. Consider the option of extending the tax rate increase with a roadmap so that businesses have the conditions to develop plans and transform production and business without being too disrupted.

"For example, the first year the tax rate increases by 5%, the following years the tax rate will increase according to a roadmap of several years instead of 1 year. When there is a reasonable policy, the goals of the special consumption tax will be more harmonious, the tax increase will not be too sudden and there will be a roadmap for business organizations to have time to transition, not affecting too much on manufacturing, trading, food service enterprises, the market and workers in this continuous supply chain" - Ms. Cuc analyzed.

Associate Professor Dr. Ngo Tri Long - economic expert said that the principle of taxation is to ensure balance and harmony of interests between the State and taxpayers.

According to experts, this important principle ensures revenue for the state budget but must not leave taxpayers in dire straits. By implementing this principle, the state will not create tax shocks for businesses, society, and workers. If the total tax payable is too large, the lives of workers will not be guaranteed; the economy will stagnate indirectly; the risk of tax evasion is very potential...

With such a high rate of increase and the continuous annual tax increase in the current plans proposed by the Ministry of Finance, it will certainly lead to a severe decline in output, resulting in the Government losing tax revenue. Therefore, it is necessary to carefully consider tax increases in the current economic context of Vietnam to avoid causing "shock" to businesses, while still ensuring state budget revenue.

Sharing this view, expert Bui Thi Viet Lam, National Representative, US-Vietnam Business Council also said that it is necessary to carefully consider the high tax increase that causes market shock, seriously affects businesses, economy, society and risks increasing illegal products.