The excise tax rates on alcohol, beer and tobacco will begin to increase in a year’s time, under the revised Law on Special Consumption Tax, which will take effect on January 1, 2016.

The law is among the eight laws that were approved by legislators at the 13^th National Assembly’s eighth session that closed on November 28.

The Law on Special Consumption Tax has been amended to ensure a stable revenue source for the State’s Budget on the basis of reasonable changes to the tax rates of a number of commodities,

Some drinkers clinking their glasses of beer at a restaurant in Viet Nam.

Accordingly, the tax rate on tobacco will be increased from the current 65 % to 70 % as of January 1, 2016, and to 75 % as of January 1, 2019.

Similarly, the tax rate levied on alcohol with 20 % concentration or higher will be raised to 55 % as of January 1, 2016, 60 %as of January 1, 2017 and 65 % as of January 1, 2018. 

Meanwhile, beer will see a tax rate increase from the current 50 % to 55 % from January 1, 2016, 60 % from January 1, 2016, and 65 % from January 1, 2018.

The special consumption tax is a type of excise tax applied to the production or importation of specific goods and the provision of certain services that are considered luxurious or non-essential.