Special consumption tax on cigarette, wine and beer to be lifted to 15%

The Government is requesting relevant agencies to raise special consumption tax on cigarettes, wine and beer to between 5-15%.

According to a document submitted to the Government on the draft on Revised Special Consumption Tax Law, cigarettes would carry a tax levy of 70%, up 5% from the present rate, from January 1, 2016 and the rate would be lifted to 75% from January 1, 2019.

The draft also provides tax rates for wine and beer.

Wine above 20 degrees would be applied a tax from 50% to 65%, while those with less than 20 degrees will be taxed at 35%, up from the present rate of 10%.

Beer would be imposed a tax of 55% from July 1, 2015 and the rate would be 60% from January 1, 2017 and 65% from January 1, 2018.

Bio-fuel will be applied for a preferential special consumption tax rate by the Government. Accordingly, E5 petrol will have a preferential rate of 9% while 8.5% will be applied for E10 petrol to encourage the use of bio-fuel and spirit fuel in domestic production to contribute to protecting the environment.

(Source: CPV)