HANOI: The tax increases on alcoholic beverages should strike a balance between curbing consumption to protect the public’s health and hindering the beverage industry, say industry experts and policymakers.

Three tax laws, including the Corporate Income Tax Law, the Value-Added Tax Law, and the Special Consumption Tax Law, have been under review and are expected to be amended in a direction that will significantly raise taxes for the industry.

Among these, a draft amendment to the Special Consumption Tax Law is expected to be presented to the National Assembly next month and can be approved as early as May next year.

The tax has been reported to take an upward trajectory, taxing alcoholic beverages starting from 2026, reaching as high as 100% by 2030.

On the other hand, excessive taxes could result in increased smuggling and counterfeiting activities, possibly leading to the formation of illegal markets, which may cause significant harm.

 - ANN