In an effort to cut consumption and generate tax revenue, the Ministry of Finance has proposed increases to the special consumption tax by mid-2015.

Here are the details of the changes from Shanghai Daily:

“Specifically, the ministry made proposals to the government to increase the tax on cigarettes to 75 percent from the current 65 percent as of mid-2015, and up by another 10 percent in early 2018.

According to the ministry, the higher tax is expected to contribute an additional 2.93 trillion VND (138.8 million U.S. dollars) to revenues in 2016, and 7.7 trillion VND (roughly 365 million U.S. dollars) in 2018.

The SCT on beer and liquor will increase to 65 percent from the current 50 percent, contributing an additional 7.8 trillion VND ( 369.6 million U.S. dollars) and 389 billion VND (18.4 million U.S. dollars) respectively.” 

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With the third largest per-capita consumer of beer in Asia (consuming 32 liters per person in 2013) behind China and Japan and a large smoking population (at least 15 million active smokers burned through 4.174 billion packs of cigarettes in 2012), these tax increases will likely have a profound effect on many, especially the poor.

With Vietnam’s population set to age rapidly by 2030, the long-term health effects of drinking and smoking have yet to reveal themselves.

Hopefully the additional tax revenue will be spent on improving medical treatment and social services related to these 'vices.' 

[Photo via Stungy2010]