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Summary

6 ECONOMY - POLICY

14 COVER STORY
CIEM PROPOSES
Reform of special TWO GROWTH SCENARIOS

consumption tax requires FOR 2024

consensus

V ietnam’s method of calculating special consumption
tax rates on alcohol, which has been applied for the
past 34 years, is becoming outdated. The application
of a new tax calculation method is being considered, to
ensure harmony of interests between parties and create ith assumptions on the global economic outlook in
consensus in implementation. A highlight of a proposal to W 2024 and the anticipated use of a number of domestic
conduct a Law on Special Consumption Tax (amended) economic policy tools, the Central Institute for
project is to add a basis for calculating rates according to a Economic Management (CIEM) has proposed two economic
mixed tax calculation method, curbing the purchase of growth scenarios for 2024. In the first, it forecasts that
unhealthy products while making a major contribution to economic growth will reach 6.13 per cent for the year, with
State budget revenue. exports to increase 4.02 per cent, a trade surplus of $5.64
billion to be posted, and average inflation to come in at about
3.94 per cent. In the second scenario, CIEM forecasts that
16 COVER STORY
GDP growth will be about 6.48 per cent, exports will increase
Effective calculation of special by 5.19 per cent, the trade surplus will be $6.26 billion, and
inflation will come in at 3.72 per cent.
consumption tax must achieve

dual goals
8 ECONOMY - POLICY

T he Ministry of Finance is implementing proposals to
amend the Law on Special Consumption Tax under
Decision No. 508 and Resolution No. 115 from the
government. The design of special consumption tax policy is
quite complex because dual goals must be met. The first is to
regulate incomes and guide production and consumption
towards protecting the environment and enhancing people’s
health. The second is to create a sustainable source of budget
revenue. There are two streams of thought surrounding the Land Law to provide effective
method for calculating special consumption tax, including
continuing to apply a relative tax system based on a use of land resources
percentage, levied on product value, and increasing rates
under a roadmap, or transitioning to a mixed tax system.
T he amended Land Law was recently approved by the
National Assembly (NA), containing a number of new
and outstanding points that are expected to remove
existing obstacles, difficulties, and inadequacies, and
contribute to improving the effectiveness and efficiency of land
management and use, for land resources to fully serve the
country’s socio-economic development. In order for the Law
to be impactful immediately after taking effect, the
government and relevant ministries and branches should
urgently develop and introduce detailed regulatory documents
and guide the transition under regulations, to ensure the
legitimate rights and interests of the State, the people, and
businesses. The Land Law is a major legislative project, with
special meaning and importance for the country’s political,
socio-economic, national defense and security, and
environmental protection endeavors, and has a profound
impact on all walks of life and the business community. It is
also, however, a very difficult and complex topic.

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