At the seminar “Comment on the proposal to amend and supplement the 5 Tax Laws, including Value Added Tax (VAT), Special Goods Tax” issued by the Ministry of Finance this morning (14/9) The VBA Association raised many opinions, no response.
Price of beverage can increase 12%
Specifically, the Ministry of Finance wants to adjust VAT to increase from 10% to 12% for soft drinks. SCT increases for fresh water producers by 10% and adds the VAT rate applicable to sugar rising from 5% to 6%.
The Alcohol and Beverages Association said three tax increases would increase prices by 12%
The Alcohol and Beverages Association said three tax increases would increase prices by 12%
VBA said that if the tax adjustment of the Ministry of Finance is realized, enterprises operating in the beverage industry will be affected most.
“If the law is enacted, the price of beverage products on the market will increase by about 12%, affecting the sale of the product.” At the same time, the cost of production will increase as the VAT rate increases. for the road, “reported Nguyen Van Viet, VBA chairman said.
According to Nguyen Vien Vi, vice president of VBA, “All the tax increase factors will have consequences for enterprises in the current context such as: increase product cost, reduce product consumption; Turnover can lead to reduced production scale, reduced labor … “.
The most affected and most affected by this law will be small and medium enterprises, and high prices will likely lead to smuggled goods, counterfeit goods, imitation goods, poor quality goods. development, “said Vi.
Tax bases are not convincing
VBA Reviewer: The Ministry of Finance’s explanatory statement on the draft law has not answered the question of how the bill will affect the economy, the beverage industry and people. Consumers. What will the state benefit and limit if it passes this law?
According to the VBA, the grounds for imposing special consumption tax on fresh water are not convincing: The Ministry of Finance offers three bases for imposition of special consumption tax on fresh water, such as tax restructuring to increase the budget. clean; In line with international trends and consumer health protection, namely obesity and diabetes.
“The first and second bases do not yet have data to prove specifically that if the excise tax on fresh water is applied, how much will the state earn? Third bases need to be scientifically justified. “Is fresh water a major cause of diabetes and obesity?” and “if excise taxes on fresh water are applied, can the reduction of obesity and diabetes occur? “VBA commented.
The association recommends that, in the case of SST on fresh water, it is proposed that the Ministry of Finance consider: Taxes on all food commodities containing sugar at a low tax rate, for example from 1 % to 3%; Or just apply excise tax on high sugar sweetened products.
Drop “sports drinks” out of the list because of the amount of sugar along with the minerals and vitamins in the sports drinks needed to help athletes or sports players replace water, electrolytes and energy first and After exercising or playing sports drinks can not be the cause of obesity and diabetes.
In addition, the VBA suggested the Ministry of Finance clarify the concept of “100% natural fruit juice, fruit juices,” “milk” and dairy products. If milk or fruit milk is subject to natural sweeteners tax?
