NEW POINTS OF THE LAW ON SPECIAL CONSUMPTION TAX NO. 66/2025/QH15 EFFECTIVE FROM 01/01/2026

On June 14, 2025, at the 9th session, the 15th National Assembly of the Socialist Republic of Vietnam approved the Law on Excise Tax No. 66/2025/QH15. Law No. 66/2025/QH15 takes effect from January 1, 2026 and has some noteworthy contents as follows:

1. Adjustment of taxable and non-taxable objects

•  According to Article 2, a number of goods are added to the taxable category, including: Helicopters, gliders; beverages with a sugar content of over 5g/100mL according to national standards. Law No. 66/2025/QH15 also narrows the scope of taxable air conditioning, only air conditioners with a capacity of over 24,000 BTU – 90,000 BTU are still subject to tax. Air conditioners designed specifically for means of transport are not subject to tax. In case of separate import of hot and cold lumps, it is still counted as a finished product;
•  According to Article 3, many non-taxable cases are added such as: goods manufactured and processed directly exported, exported goods are returned; cars and vehicles that are not registered for circulation and run in narrow areas such as relics, hospitals, schools; helicopters and gliders used for rescue, rescue and training.

2. Supplementing absolute taxes on cigarettes

• For the first time, the Law on Excise Tax stipulates two tax calculation methods: Calculated as a percentage: based on the taxable price and the tax rate. Calculation according to the absolute tax rate: based on the amount of taxable goods and the absolute tax rate;
•  Imposition of absolute tax on cigarettes according to the roadmap 2027-2031: the absolute tax rate increases year by year for: Cigarettes from 2,000 VND/pack (2027) to 10,000 VND/pack (2031); cigars from 20,000 VND/cigarette (2027) to 100,000 VND/cigarette (2031); cigarettes and tobacco from 20,000 VND/100g (2027) to 100,000 VND/100g (2031).

3. Increase in tax rates on alcohol

•  Increase the tax rate on alcohol from 2026: According to Article 8, the alcohol tax rate is gradually increased: Wine ≥ 20 degrees: from 65% (2026) to 90% (2031); alcohol < 20 degrees: from 35% (2026) to 60% (2031);
•  Increasing the tax rate for beer according to the roadmap: Similar to alcohol, the beer tax rate will increase from 65% in 2026 to 90% in 2031, contributing to a healthy consumption orientation.

4. Law on Excise Tax No. 27/2008/QH12have been amended and supplemented a number of articles under the Law No.70/2014/QH13, Digital Law71/2014/QH13, Digital Law106/2016/QH13and Digital Law03/2022/QH15shall cease to be effective from the effective date of this Law.