Cigarettes are subject to a new tax of 10,000 VND/pack, alcohol, beer and soft drinks from 2026 will apply a 5-year tax increase roadmap
The Law on Special Consumption Tax (amended) at the 9th Session, officially taking effect from January 1, 2026, applies a 5-year tax increase roadmap (2027-2031) for cigarettes, alcohol, cars and soft drinks.
Special consumption tax to increase sharply on tobacco, alcohol and soft drinks from 2026
From 2027, tobacco products will be subject to absolute tax according to the following roadmap:
Cigarettes: Increase by VND 2,000/pack/year, reaching VND 10,000/pack (20 cigarettes) by 2031.
Cigars: Increase by 20,000 VND/cigar/year, to 100,000 VND/cigar (20g).
Shredded tobacco, pipe tobacco: Increased to 100,000 VND/100g or 100ml.
In addition, the current 75% tax rate remains in place.
For wine and beer, tax rates will increase steadily from 2027 to 2031, with wine from 20 degrees or more increasing from 65% to 90%, wine under 20 degrees from 35% to 60%, and beer from 65% to 90%.
Soft drinks with sugar content above 5g/100ml will be subject to a tax rate of 8% from 2027, increasing to 10% in 2028.
Adjusting car tax and adding taxable items
Double-cabin cargo pickups and VAN trucks with two or more rows of seats will also be subject to a 3% annual tax increase from 2027 to 2029.
The law also expands the taxable objects to include air conditioners with a capacity of 24,000 to 90,000 BTU, and exempts direct exports, aircraft, helicopters, and yachts used for transportation, security, defense, rescue, and agricultural production purposes.
Tax exemption and refund regulations
Regarding tax refunds, the supplementary law stipulates that tax refunds are not granted in cases of business ownership transfer, merger, consolidation, separation, or termination of operations, but allows tax refunds for mineral fuels used to produce biofuels if the tax amount has not been fully deducted.
