Coca-Cola suggests broader approach to SCTWhile agreeing with the spirit of taxation and carrying a spotless record of tax payments, Coca-Cola Vietnam claims the Ministry of Financial's proposal to isolate non-alcoholic beverages and soft drinks for taxation goes against international best practices. A representative of Coca-Cola system told VIR that the corporation agrees with the spirit of taxation because Coca-Cola recognises that governments need revenue for constructing infrastructure and providing necessary services and the Coca-Cola system has consistently paid all taxes according to local laws.However, Coca-Cola opposes the isolation of non-alcoholic beverages for the addition of special consumption tax (SCT). During the period of 2000-2015, the number of overweight and obese children increased eight-fold. This issue contributes to a large number of diseases, such as cardiovascular issues, hypertension, and stroke, and soft drinks are a major cause.In Thailand, soft drinks have to bear SCT of 20-25 per cent, while the figure is 5-10 per cent in Laos and 10 per cent in Cambodia.Three other countries in the ASEAN, namely Myanmar, the Philippines, and Indonesia, are also considering applying the SCT on soft drinks.It is not the first time that MoF has submitted this proposal. In February 2014, MoF released its first draft Law on Special Consumption Tax that proposed a 10 per cent tax on carbonated soft drinks, citing several studies that pointed out their potentially harmful effects on human health.

Source: VietNamNet News August 18, 2017 10:18 UTC