The Vietnamese parliament has recently approved a proposal to increase tax on ‘beer and strong liquor’ from 65% currently to an unprecedented 90% by 2031.
According to Vietnam’s Finance Ministry, the higher taxes are necessary to reduce consumption of alcoholic drinks, and will be introduced progressively from 70% by 2027 to 90% in 2031.
Under the new law, drinks with an alcohol content of more than 20% will eventually shoulder the new 90% tax, while those with an ABV of less than 20% will see their rates rise from 35% to 60% by 2031. However, brewers and beer drinkers are questioning why beer has been lumped in with the higher ABV category when the alcohol content of the products is considerably less than that of spirits.
Apart from alcoholic drinks, sugary drinks will also be hit with a new 8% tariff from 2027, rising to 10% in 2028. This applies to any drink containing more than 5g of sugar per 100ml and is intended to combat rising health problems in the country such as obesity and diabetes.
The World Health Organisation (WHO) said that the latest tax reform on beverages by Vietnam could indirectly protect its youth and the community from harm caused by excessive consumption of alcohol, tobacco and sugary drinks.
