Air conditioners with a capacity of 24,000 BTU or less, as well as those exceeding 90,000 BTU, will be exempt from the SCT, Deputy Chairman of the NA Nguyen Duc Hai affirmed.
During the closing session on the morning of June 4, Mr. Phan Van Mai, Chairman of the NA's Committee for Economic and Financial Affairs, presented the proposed revisions to the amended Special Consumption Tax Law to the NA Standing Committee. According to Mr. Phan Van Mai, air conditioners within the 24,000–90,000 BTU range will remain subject to the tax, but units below or above that range will not.
The revised draft also narrows the scope of SCT applied to sweetened beverages. Under the current proposal, only beverages with a sugar content exceeding 5g per 100ml will be taxed. This excludes milk and dairy products, nutritionally purposed liquid foods, natural mineral water, bottled drinking water, 100 percent pure fruit and vegetable juices, nectar, and cocoa-based drinks.
“As such, products like natural fruit juice, coconut water, dairy items, and nutritional liquid foods are not subject to the SCT,” said Mr. Phan Van Mai.
Regarding fuel taxation, Mr. Phan Van Mai acknowledged the need for a long-term strategy to revise both the SCT and the Environmental Protection Tax to align Vietnam’s practices with international standards. “Given the Government’s commitments under COP26, and the need for coordinated solutions, the application of SCT on gasoline remains necessary at this stage,” he stated. He clarified that while SCT is currently being used as a stopgap measure, the ultimate goal is to consolidate fuel taxation under environmental levies.
Another notable amendment exempts aircraft, helicopters, and gliders used for emergency rescue or agricultural purposes from the SCT, as these are not considered products that require consumption restriction.
Commenting on the draft, Vice Chairman of the National Assembly Vu Hong Thanh and Chairman of the Legal and Judicial Committee Hoang Thanh Tung maintained that taxation on air conditioners should be based on environmental impact and technology, rather than capacity alone. More eco-friendly models, they argued, should be taxed at a lower rate.
Sugary drinks also continued to be a focus of debate. Head of the NA’s Committee for Deputy Affairs Nguyen Thanh Hai and Chairman of the Committee on Culture and Social Affairs Nguyen Dac Vinh both stressed the need for clearer scientific justification for taxing sweetened beverages.
In his concluding remarks, Deputy Chairman Nguyen Duc Hai stated that while some concerns remain, the NA Standing Committee has reached consensus: air conditioners with a capacity from 24,000 BTU to 90,000 BTU will be subject to the SCT, while other units will be exempt. The NA Standing Committee also agreed to maintain SCT on gasoline as outlined in the draft, but urged the Government to better address lawmakers' concerns for stronger justification.
As for alcohol, beer, and sugary drinks, Deputy Chairman Nguyen Duc Hai called on the Government to conduct a more thorough impact assessment to ensure the policy rests on solid and convincing grounds.
