The ongoing discussions in the National Assembly continued on March 26 with the 7th meeting of full-time deputies addressing proposed changes to the Special Consumption Tax (SCT) Law.
Key items such as gasoline, air conditioners, alcohol, and tobacco remain at the center of the debate. Several deputies have raised concerns over the impact of the proposed tax changes on consumer behavior.
Deputy Hoang Van Cuong from Hanoi emphasized that the main goal of the SCT is to influence consumer behavior, not merely to raise revenue. He pointed out that the draft amendments do not fully align with this goal. Specifically, he questioned the decision to tax air conditioners, noting that they have become essential items for many households. “Taxing air conditioners won’t stop people from using them,” he said, urging for a clearer direction in the draft law.
Deputy Nguyen Truong Giang from Dak Nong echoed this concern, stating that the direction of the tax policy should be clearly defined instead of leaving it ambiguous.
When it comes to alcohol and tobacco, Deputy Hoang Van Cuong supported the idea of imposing higher taxes but expressed doubts about the proposed gradual increases. He compared the proposed incremental hikes—5% annually for alcohol and VND1,000 per pack of cigarettes—to slowly heating a frog in cold water, arguing that such small increases wouldn’t effectively change consumer behavior. He suggested that larger, more immediate tax increases would be more effective in encouraging people to reconsider their consumption habits.
Deputy Do Thi Lan, Deputy Head of the NA’s Social Affairs Committee, recommended an absolute tax rate for cigarette packs containing 20 cigarettes and cigars weighing 20g per stick. For packs with different quantities, she proposed allowing the government to set guidelines after consulting with the National Assembly’s Standing Committee. She also called for the prompt amendment of the Law on Prevention and Control of Tobacco Harms to provide clearer regulations for tobacco control, business investment, and import-export activities.
Some deputies proposed exempting gasoline from the SCT altogether. Deputy Nguyen Truong Giang argued that gasoline is a vital commodity, and restricting its use through tax would not be practical. He pointed out that gasoline is already taxed both under the SCT and the Environmental Protection Tax. If the intention is to address environmental concerns, he suggested that adjustments should be made to the Environmental Protection Tax instead of adding another layer of tax.
Deputy Minister of Finance Cao Anh Tuan responded by reaffirming that the SCT is designed to regulate consumer behavior. He acknowledged that air conditioners, once considered luxury items, are now widely used. The drafting committee, he said, will work with relevant agencies to reconsider the tax approach. Regarding gasoline, he noted that many countries apply both SCT and the Environmental Protection Tax, and the proposed tax rate for biofuels is intentionally lower to encourage their use.
Vice Chairman of the National Assembly Nguyen Duc Hai, who chaired the session, requested the drafting committee to revise the proposals in line with the deputies’ recommendations.
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