Vietnam will impose an 8% excise tax on sugary drinks starting in early 2027, increasing to 10% in 2028, under the revised Excise Tax Law passed by the National Assembly on Saturday.
For the first time, beverages containing at least 5 grams of sugar per 100 milliliters will be subject to this tax.
However, certain drinks are exempt, including milk and dairy products; bottled purified water and natural mineral water; pure fruit and vegetable juices and nectars; cocoa-based beverages; coconut water; and liquid nutritional supplements.
In a prior explanatory report, Phan Van Mai, Chairman of the National Assembly’s Economic and Financial Committee, said the inclusion of sugary drinks in the taxable list aligns with international standards and aims to influence production and consumption habits while expanding the tax base.
Some lawmakers suggested that artificially sweetened soft drinks also be taxed, but the National Assembly’s Standing Committee stated there is currently insufficient evidence or impact analysis to support this. As a result, the committee recommended further study and evaluation before any decision is made.
