Law No. 57/2005/QH11: Amending the SCT & VAT Laws

According to this Law, which was passed by the XI^th National Assembly at its 8th session on November 29, the special consumption tax (SCT) rates of 50%, 30% and 15% would apply to under-5 seat cars, cars of between 6 and 15 seats, and cars of between 16 and 24 seats, respectively

According to this Law, which was passed by the XI^th National Assembly at its 8th session on November 29, the special consumption tax (SCT) rates of 50%, 30% and 15% would apply to under-5 seat cars, cars of between 6 and 15 seats, and cars of between 16 and 24 seats, respectively.

Cigarettes will be subject to the tax rate of 65% as from 2008, while in 2006 and 2007, the tax rate will be 55%.

For fresh beer and draught beer, the applicable tax rates will be 30% in 2006 and 2007 and 40% in 2008, while for bottled beer and canned beer, the tax rate of 75% shall apply.

  Liquors of 40% proof or higher, liquors of 20% to under 40% proof and liquors of under 20% proof will be subject to the tax rates of 65%, 30% and 20%, respectively.

The Law also says that farm and husbandry products, aquatic and marine products, which are not yet processed or have been preliminarily processed will not be subject to value added tax (VAT).

For preliminarily processed cotton, the VAT rate of 5% shall apply.

This Law takes effect as from January 1, 2006

(Source: VietnamLaw)