`Increasing beer prices` is the prominent message brought by businesses to the Discussion on the implementation of Decree 108 and Circular 195 held on March 16 at the Ministry of Industry and Trade.
They want to increase prices to compensate for taxes, but businesses are also afraid of declining beer consumption.
Beer businesses currently operate under a multi-level business model, with production units and distribution systems (commercial businesses) often being independent legal entities.
Before these regulations, many businesses used the separate production business model mentioned above to reduce the special consumption tax payable.
Talking to VnExpress, Mr. Le Hong Xanh – Member of the Board of Directors of Saigon Beer – Alcohol – Beverage Corporation (Sabeco) commented that applying the above two regulations at the same time will affect the business results of businesses.
Sharing this opinion, Mr. Nguyen Van Viet, Chairman of the Beer – Alcohol – Beverage Association (VBA) calculated that with a 5% tax increase in 2016, beer prices will increase by 5%, not to mention about
`Currently, Hanoi beer has a factory price of 135,000 VND per barrel but on the market it sells for 132,000 VND,` Mr. Viet cited.
Meanwhile, Mr. Nguyen Hong Linh – Member of the Board of Directors of Hanoi Beer – Alcohol – Beverage Corporation (Habeco) said that the time from promulgation (October-November 2015) to effective date was too long.
Therefore, Mr. Linh and VBA members proposed to delay the implementation of the new regulations until early 2017, and at the same time remove the provision for calculating tax based on the selling price of trading companies related to the company.
Sharing these views, Head of the Legal Department of the Vietnam Chamber of Commerce and Industry (VCCI) – Dau Anh Tuan said that the issuance of documents must have an appropriate time and roadmap for changes.
Meanwhile, Mr. Pham Tuan Khai – former Director of the Department of Law, Vice Chairman of the Administrative Procedure Reform Advisory Council of the Government Office, said that management agencies need to listen to opinions and ensure harmony of interests.