Vietnam reconsiders air conditioner tax amid debate on luxury vs. necessity and environmental impact

On March 10, Vietnam’s National Assembly Standing Committee reviewed the new draft Law on Special Consumption Tax, which currently imposes a 10% tax on air conditioners of 90,000 BTU or less, alongside gasoline. Lawmakers debated whether these goods should still be considered luxury items, as air conditioners have become essential in many households.

 

Vice Chairwoman Le Thi Nga argued that taxing essential items contradicts the purpose of special consumption tax. She emphasized that even low-income families now rely on air conditioning, questioning the fairness of the policy. However, some officials defended the tax, citing environmental concerns, as air conditioners use hydrofluorocarbons (HFCs), potent greenhouse gases contributing to global warming.

 

Deputy Minister of Finance Cao Anh Tuan pointed out that several countries, including South Korea, India, and Norway, impose taxes on HFCs to encourage energy efficient and environmentally friendly appliances. He argued that removing the tax could lead to higher energy consumption and environmental impact. The government will reassess whether air conditioners should remain subject to the tax or if alternative environmental policies, such as increased energy efficiency regulations, should be implemented.

 

 

 

Source

https://www.vietnam.vn/en/de-nghi-bo-thue-tieu-thu-dac-biet-voi-xang-dieu-hoa