Do you think drink prices in Thailand are too high? Read this

[Gaybutton]

Vietnam plans raising special consumption tax on alcoholic drinks to 100% by 2030

June 14, 2024

HANOI: Vietnam's Finance Ministry has proposed to hike a special consumption tax on alcoholic drinks to 100% by 2030, the ministry said, a move that may further hurt the country's beverage industry.

Under the draft proposal which is pending lawmakers' approval, the special consumption tax on beer and strong liquor will be raised to 70%-80% by 2026 and gradually increase it to 90%-100% in 2030, compared with the current 65%.

"Alcoholic drinks and beer prices will increase by 20% in 2026, compared with 2025," the finance ministry said in the proposal, adding that prices would continue to increase by 2%-3%, depending on inflation.

"Levying high tax rates is necessary to help reduce consumption of alcoholic drinks," it added.

Vietnam's beer industry, dominated by four major brands -Dutch Heineken, Danish Carlsberg and local Sabeco and Habeco - has already been hit by the country's strict drink and driving law, under which the alcohol content limit for drivers is zero since 2019.

Heineken Vietnam Brewery, the country's beer market leader with a 37.6% share, recorded a 24% decline in total consumption last year, according to a May report from FPT Securities.

Sabeco, accounting for 34.4% of the market, also posted a 12.6% fall in consumption. On the contrary, Carlsberg's domestic consumption rose by 8%, it added.

Last year, the beer industry's revenue decreased 11% and profits decreased by 23%, according to estimations of the Beer - Alcohol - Beverage Association.

Shares in Sabeco fell by 3.66% on Friday morning after the ministry's proposal.

A Sabeco spokesperson declined to comment but said it would contribute the company's opinion to the Beer - Alcohol - Beverage Association as a member of the Association.

Carlsberg and Heneiken did not immediately respond to Rueters' requests for comment.

The finance ministry also proposed a hike in special consumption tax on soft drinks and cigarettes.

https://www.bangkokpost.com/business/ge ... 00-by-2030

[Jun]

Considering the thread title, I'm not exactly sure what the taxes on Thai beer are, so it's difficult to compare.
Google is not as helpful as normal when I search for "Thai beer tax".

Then, what does 100% mean for Vietnam ? 100% of production price ?

[Gaybutton]

Then, what does 100% mean for Vietnam ? 100% of production price ?

I thought it means however much the tax is now, it's going to double.

[Jun]

I thought it means however much the tax is now, it's going to double.

If that were the case, I think they should have written "a 100% increase in tax". The article seems to suggest it is currently 65%.

I think writing they are increasing taxes to 100% means it has to be 100% of something. Probably the production cost, or wholesale cost. But who knows ?

We're comparing a Thai tax rate I can't find with a Vietnam tax rate we don't understand.

Also,a small bottle of beer costs approximately:
40 baht in a shop
~70 baht in bars around Soi Bukhao (according to the signs)
80~100 baht in Jomtien beer & host bars
130 baht in Panoarama etc
200~280 in the kind of Boyztown gogo I might visit
~400 in a Bangkok gogo.

So I suspect where we choose to buy our beer has more effect than the Thai tax rate. Admittedly, some bars provide more value in return for the higher prices.


Getting back to the original point, whatever the tax rate they set, the Vietnamese people will have no say whatsoever in electing the government that decides that tax rate.

[christianpfc]

I rarely drink alcohol, so a higher tax on alcoholic drinks wouldn't affect me much.
Anyway, it's mostly not taxes that account for the prices for drinks (with or without alcohol) in bars.