Vietnam to Raise Tobacco Taxes Under New Law
Vietnam’s National Assembly has passed a new law that will significantly increase special consumption taxes on tobacco, alcohol and beer starting January 1, 2026. The law also sets a tax roadmap for tobacco products from 2027 to 2031, adding a specific ab
Vietnam’s National Assembly has passed a new law that will significantly increase special consumption taxes on tobacco, alcohol, and beer starting January 1, 2026. The law also sets out a tax roadmap for tobacco products from 2027 to 2031, introducing a specific tax component for the first time on top of the existing ad valorem tax rate.
Under the new plan:
Cigarettes: taxes will increase by VND 2,000 (US$0.08) per pack each year, reaching VND 10,000 (US$0.40) per pack by 2031.
Cigars: starting at VND 20,000 (US$0.80) per stick in 2027, rising to VND 100,000 (US$4) per stick by 2031.
Other forms of tobacco, such as pipe tobacco or loose tobacco: set at VND 20,000 per 100 grams or 100 milliliters in 2027, increasing to VND 100,000 by 2031.
This marks the first time Vietnam has followed other countries around the world in implementing a structural specific tobacco tax. Previously, Vietnam only imposed an ad valorem tax.
