Luu Duc Huy, deputy director general of the Department of Tax Policy Oversight under the ministry (MoF), made the comments at a workshop last week on the topic.

The proposal to delay, submitted to the National Assembly’s (NA) Economic and Financial Committee, seeks to ensure that tax reforms support economic resilience while maintaining regulatory objectives.

According to Huy, the revision of special consumption tax (SCT) strictly follows the tax reform outlined in Vietnam’s tax development strategy through to 2030.

“The strategy contains no directive to increase SCT for the purpose of raising state revenue. There is no reference in the tax reform roadmap to increasing SCT solely for boosting the budget,” Huy said, countering concerns raised about the amendment’s fiscal motives.

The MoF has recommended adopting a more gradual tax adjustment schedule and delaying the effective date to 2027 (see box). This approach is intended to give enterprises more time to adapt without compromising the tax’s regulatory role.

Nguyen Hoang Giang, general director of Saigon Beer Trading Company, said, “The sector has been heavily affected by the pandemic, global trade tensions, and geopolitical conflicts, which have disrupted supply chains and driven up production costs. At the same time, beer consumption continues to decline due to various policy pressures,” Giang said.

He called on lawmakers and regulators to adjust both the magnitude and timing of the tax increase, aligning with the Vietnam Beer Alcohol Beverage Association proposal to support the sector’s recovery.

Tran Dinh Thanh, chairman of Hanoi Beer Alcohol Beverage JSC, pointed to the issue of illicit alcohol and untaxed local beer flooding the market. “If taxes rise now, consumers will likely shift towards these unregulated, lower-quality products,” Thanh said.

While supporting the recommendation to delay tax hikes, he argued that even 2028 might be too early, suggesting that higher taxes should only take effect when enterprises return to solid profitability.

Nguyen Thanh Phuc, director of external relations at HEINEKEN Vietnam, raised concerns about the broader economic ripple effects.

“In 2023, we spent over $650 million on goods and services from local small and medium-sized enterprises, accounting for over 80 per cent of our domestic procurement. A production cutback due to higher taxes would not only affect us but also the livelihoods of tens of thousands of smaller businesses,” Phuc said.

He argued that advancing the SCT amendment at the upcoming NA session would place an additional burden on businesses already facing rising costs, weak consumer demand, and global trade uncertainties.

Economist Nguyen Minh Phong said that the SCT must be carefully calibrated to avoid destabilising the market. “Increasing the SCT at this time could risk slowing down economic recovery and harming key industries,” Phong said.

The NA’s Economic and Financial Committee is now reviewing the MoF’s proposal, with the revised draft law expected to be presented at the upcoming parliamentary session. For enterprises, the government’s willingness to reconsider the tax roadmap signals a constructive approach, though many continue to call for more in-depth engagement and further adjustments.