CHÍNH PHỦ NGƯỜI TIÊU DÙNG NHÀ SẢN XUẤT

( GOVERNMENT) (CONSUMER) (PRODUCER)

STRENGHT - Generate revenue for the - Limiting money spent
(ĐIỂM MẠNH) state budget on these items
- Limiting production,
trading and consumption
WEAKNESS - The current method of - The demand for - Reducing the number
(ĐIỂM YẾU) collecting special excise tax drinking water is limited of diversified goods that
is not yet diversified and no longer diversified the producer is working
- Spend a large amount of on
money to strengthen the
fight against smuggling of
counterfeit and fake goods
and solve the problem of
redundant labor.
OPPORTUNITY - Reducing the
(CƠ HỘI) percentage of diseases
such as diabetes, heart,
liver, ... caused by soft
drinks
THREAT -High taxes are also - Find good quality
(THÁCH THỨC) sometimes failed and / or items to replace
ineffective, for example,
those who are addicted to
soft drinks, alcohol and
beer.

ANALYSIS OF THE CHARGE OF SPECIAL CONSUMPTION TAX ON COOKED DRINK IN VIETNAM

Drinks are one of the most important foods for humans. Since the invention of canning and
preservation techniques, bottled beverages have gained worldwide popularity. Many drinks are
favored, especially young people, such as beer, wine, energy drinks, carbonated soft drinks, fruit
juices ... Drinks subject to SST tax often have the characteristics that some drinks often cause harmful
or potentially harmful to human health. Currently, the subject of special tax is beverages which are
mainly classified into 3 categories: alcoholic beverages (eg beer, wine), carbonated beverages (sugary
or unsweetened soft drinks) and other beverages. (eg tea, coffee, juices…). In particular, alcoholic
beverages are subject to Excise tax due to the direct negative impact of this beverage on human
health and life. In general, with the exception of beer and alcohol, most of the remaining beverages
contain a certain percentage of sugar. Besides the negative effects of alcoholic beverages, studies
around the world and in Vietnam have also shown more clearly the negative effects of soft drinks on
consumers' health. Currently, countries in the world such as the United States, Finland, Croatia,
Thailand, and France have applied special consumption tax on non-carbonated soft drinks ... However,
there are also some countries. They used to tax this product but then abolish or reduce the tax rate
because the economic losses are too great, such as Egypt, Ireland, Denmark.

Strength:
- Reducing the number of people with obesity, heart, liver, ... affected by soft drinks or soft drinks.
(1,2)
- This will also help increase state budget revenues. (1)
- Limiting production, trading and consumption, because these goods have a negative effect on health
and the environment. (1)
Weakness:
- Affects quite a lot on the production side of these products. (May reduce the number of products
significantly -> affect both workers in the production stage and sugarcane farmers) (affect the
producers and suppliers of the raw materials for the production of soft drinks. (Adam Sitkoff,
Managing Director of AmCham Vietnam said that there is no evidence that taxation will help
Vietnamese people to have a Better health, meanwhile, there is evidence proving that this taxation
has a negative impact on the economy.
“The excise tax will also affect job opportunities for people. You cannot abruptly cut down on
consumption of a product unless there are sufficient compelling reasons to justify the need to do so,
and no good reason has so far been given. Not only in Vietnam but elsewhere like California, they just
passed a law that says they won't enact any new taxes on food and beverages in the future. I suggest
that the Vietnamese government should not impose excise tax on soft drinks because that will create
negative impacts on the beverage industry ”, Mr. Sitkoff affirmed.) (2,3)
- The State also has to spend a large amount of money to strengthen the fight against smuggling of
counterfeit and fake goods and solve the problem of redundant labor when enterprises are forced to
cut production capacity when the scale decreases and prices city ") (1)
- The current method of SST collection is not yet diversified, leading to limited efficiency in tax
calculation and makes it difficult for inspection and supervision. (1)
- Demand for drinking water is limited and is no longer diverse for consumers (2)
Opportunity:
- Reduce the rate of diseases such as diabetes, heart, liver, ... caused by fresh water (2)
Threat:
- Attempts to change consumer behavior through high taxes are sometimes also ineffective and / or
ineffective. (In some cases, imposing a high tax on certain goods will not change consumer behavior
as their needs are too closely tied to that type of goods, for example, People who are addicted to
cigarettes or alcohol. Consumers will even use lower-grade goods of the same type at a lower cost
and that means more impact on their health.) first)
- Must look for alternative products to ensure the quantity of items