The National Assembly has recently passed the amended Law on Special Consumption Tax with the expansion of the list of goods and services subject to excise tax.

The amended law expands the scope of taxable items in line with goals to protect the environment and promote healthier consumption habits, while ensuring a balance with socio-economic objectives. The newly added items will continue to be monitored and may be expanded in the future.

Air conditioners with a capacity of 24,000–90,000 BTU will now be subject to special consumption tax. Units with a capacity of less than 24,000 BTU or more than 90,000 BTU commonly used in large/central cooling systems are exempt from the tax.

Sugar-sweetened beverages with more than 5g of sugar per 100 ml such as soda, and sweetened tea will be subject to 0% tax in 2026, 8% starting January 2027, and 10% tax starting January 2028.

Milk, 100% fruit juice, coconut water, liquid nutritional supplements, mineral water, and nectar drinks will be exempt from the tax.

Petroleum products remain subject to special consumption tax to support Vietnam’s environmental commitments under COP26 and encourage biofuel use.

Tax rates levied on cars, motorcycles, tobacco, alcohol, playing cards, casinos, massage, karaoke, prize-winning games, betting, golf, and lottery remain unchanged.

Certain equipment, like aircraft, helicopters, and gliders used for emergency rescue or agricultural purposes will now be exempt from the special consumption tax.

The law will take effective from January 1, 2026.