NA deputies cast their vote on the revised Excise Tax Law on Saturday. — VNA/VNS Photo

HÀ NỘI — The National Assembly (NA) on Saturday voted to approve the revised Excise Tax Law, adding sugar-sweetened beverages and certain air conditioners to the list of taxable items, as part of efforts to protect public health and the environment.

The revised law was passed with 448 out of 454 NA deputies present voting in favour and will take effect from January 1, 2026. It amends 11 provisions, introducing new tax policies targeting energy-intensive and health-related products.

Under the new law, air conditioners with a capacity between 24,000 and 90,000 BTU will be subject to excise tax. Air conditioners outside this range—either below 24,000 BTU or above 90,000 BTU—will be exempt.

According to Economic and Financial Committee Chairman Phan Văn Mãi, air conditioners are major electricity consumers and contributors to global warming, warranting regulation to guide production and consumption.

Sugar-sweetened beverages will also be taxed if they exceed 5 grams of sugar per 100 millilitres, following Vietnamese Standards for beverages. Exemptions include milk and dairy products, natural fruit juices, coconut water, and liquid foods used for nutritional purposes.

“Imposing an excise tax on sugar-sweetened beverages is necessary and consistent with international practice,” Mãi said.

Although some lawmakers called for further impact assessments and proposed delaying the tax on sugar-sweetened beverages, the NA adopted a phased implementation: no tax in 2026, followed by an 8 per cent tax in 2027 and 10 per cent starting January 1, 2028.

The law also imposes an absolute tax on cigarettes, starting at VNĐ2,000 (US$0.08) per pack in 2027, increasing by VNĐ2,000 annually until reaching VNĐ10,000 ($0.40) in 2031.

Alcohol and beer will also face gradual tax hikes. For alcohol with 20 per cent alcohol content or more, and for beer, the rate will start at 65 per cent in 2026, increasing by 5 per cent annually to reach 90 per cent in 2031.

For alcohol under 20 per cent, the rate will begin at 35 per cent in 2026, rising annually to 60 per cent by 2031.

WHO Representative in Việt Nam, Dr Angela Pratt, congratulated Việt Nam on adopting increased and new taxes on these unhealthy products, which she said would contribute to a healthier and more prosperous country.

“WHO is very pleased that lawmakers have seized this opportunity to achieve a ‘win-win’ of reducing the consumption of tobacco, alcohol and sugary drinks — and therefore reducing harm and health costs for decades to come — while generating additional revenue for key Government priorities,” said Dr Pratt.

“Reducing consumption of these unhealthy products will improve population health, and in doing so, workforce participation and productivity.” — VNS