HANOI, Aug. 16 (Xinhua) -- Vietnam is considering to levy a special consumption tax on soft drinks, the Tax Policy Department under the country's Finance Ministry said on Wednesday.
The ministry will propose a tax rate of either 10 percent or 20 percent which is expected to be imposed from 2019, the department said, explaining that the tax is in line with international practice and helps regulate consumption of sugar-containing drinks that can lead to obesity.
The Finance Ministry will also propose increasing special consumption taxes on cigarettes to 75 percent in 2019 from the current 70 percent.
Vietnam annually produces some 5 billion packs of cigarettes and consumes around 4 billion packs, so if the absolute excise tax rate of 1,000 Vietnamese dong is imposed, its state budget will expand by about 4,000 billion Vietnamese dong (177 million U.S. dollars) a year, said the department.
