The Ministry of Finance is collecting public opinions on a proposal to increase special consumption tax rates on a number of items harmful to people’s health, including tobacco, beer, and alcoholic beverages, to limit imports, production, and consumption.

The suggestion is part of a draft revised Law on Special Consumption Tax.

Taxes on tobacco, beer, and alcohol in Vietnam are still quite low, according to the ministry, at 75 per cent, 65 per cent, and 35-65 per cent.

It said existing regulations have certain limitations in the context of current socio-economic development. In particular, tax rates for certain kinds of products considered harmful to people’s health and society and some luxurious commodities are still low and fail to reach the target of limiting consumption.

The revised law is aimed at removing obstacles in production and trade activities, reforming administrative procedures, and limiting the import, production, and consumption of products harmful to people’s health and the environment, according to the ministry.