HANOI: Vietnam's Finance Ministry has proposed to hike a special consumption tax on alcoholic drinks to 100 per cent by 2030, the ministry said, a move that may further hurt the country's beverage industry.
Under the draft proposal which is pending lawmakers' approval, the special consumption tax on beer and strong liquor will be raised to 70 per cent to 80 per cent by 2026 and gradually increase it to 90 per cent to 100 per cent in 2030, compared with the current 65 per cent.
"Alcoholic drinks and beer prices will increase by 20 per cent in 2026, compared with 2025," the finance ministry said in the proposal, adding that prices would continue to increase by 2 per cent to 3 per cent, depending on inflation.
"Levying high tax rates is necessary to help reduce consumption of alcoholic drinks," it added.
Vietnam's beer industry has already been hit by the country's strict drink-driving law, under which the alcohol content limit for drivers has been zero since 2019.
Last year, beer industry revenue decreased by 11 per cent and profits decreased by 23 per cent, according to estimations of the Beer - Alcohol - Beverage Association.
Shares in Sabeco, Vietnam's largest brewer, fell by 3.96 per cent on Friday morning after the ministry's proposal.
The finance ministry also proposed a hike in special consumption tax on soft drinks and cigarettes.
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