Exploring excise tax on sugar – sweetened beverages worldwide: A discussion and enhancing excise tax for Vietnam

Abstract

The seminar discussing the draft amendment to Vietnam’s excise tax law was hosted by the Vietnam’s Association of Foreign Invested Enterprises (VAFIE), The Investor, and Dai Bieu Nhan dan (People’s Representative) newspaper under the National Assembly Office. There were numerous debates surrounding four key issues. Among them, Prof. Nguyen Mai, VAFIE chairman, stated that in addition to proposals to expand the scope of excise tax to include products or services with potential negative impacts on health and the environment, many opinions suggested that the effects of such policy expansion should be thoroughly studied. The study analyzed the impact of imposing an excise tax on sugary drinks, a matter currently being debated in the draft amendment to the Law on Excise Tax. Including sugary drinks in the taxable category is aimed not only at increasing state revenue but also at protecting public health, as sugary drinks are a leading cause of non-communicable diseases such as obesity, diabetes, and cardiovascular conditions. The study highlighted that many countries, including Mexico, South Africa, the United States, and the United Kingdom, have implemented taxes on sugary drinks and achieved both healthcare field and economic achievements. Therefore, researching and implementing this tax policy in Vietnam is essential to control sugary drink consumption and improve public health