National Assembly Delegate: Even poor people use air conditioners, why is it considered a luxury to impose special consumption tax?

Poor workers in rented houses also install air conditioners. I don't understand why this item is included in luxury goods to be subject to special consumption tax.

Delegate Nguyen Minh Hoang - Photo: QUANG PHUC

That was the question of many National Assembly delegates when discussing in groups the draft Law on Special Consumption Tax (amended) on the morning of November 22.

Air conditioners should not be considered luxury goods subject to special consumption tax.

During the discussion of this bill, many delegates expressed surprise and concern when the bill stipulated that air conditioners with a capacity of 90,000 BTU or less must be subject to a special consumption tax rate of 10%.

Delegates agreed that air conditioners are not luxury goods so special consumption tax should not be imposed.

Delegate Nguyen Minh Hoang (HCMC) said: "If we impose a special consumption tax on air conditioners, it is inappropriate. In reality, most families with enough food have installed air conditioners. In the current hot weather conditions in both the North and the South, it is impossible not to have air conditioners in the house."

Mr. Hoang said that in 1998, air conditioners were included in the list of goods subject to special consumption tax of 20%, but in 2008, it was seen as unreasonable so it was reduced, and now it is increased again. This is unreasonable and should be considered.

According to Mr. Hoang, installing air conditioning also aims to ensure health, restore labor energy after working hours, requiring stable and comfortable sleep. Without air conditioning, it will be difficult to ensure health.

On the other hand, when using air conditioners, people already pay progressive electricity costs. Now, having to pay a special tax rate when installing them will greatly affect people and they will not be satisfied with this policy.

Therefore, according to the delegate: "Installing air conditioners is a necessity of life for the majority of people, it should not be considered a luxury item. While we say our country is developing, we are having a happier life, we must create conditions for people to have a more comfortable life."

Regulations will push living conditions back 30-40 years

Delegate Truong Trong Nghia (HCMC) - Photo: QUANG PHUC

Agreeing with the above opinion, delegate Truong Trong Nghia (HCMC) said that regulations like the bill will push Vietnam's living conditions back to 30-40 years ago.

According to Mr. Nghia, special consumption tax often aims to limit and discourage people from using a certain product.

In the current weather conditions, even poor workers in boarding houses install and use air conditioners for their daily needs. Taxing air conditioners is unreasonable.

"Decades ago, this item was truly a luxury, but with current economic conditions and in a tropical country like Vietnam, I don't understand why special consumption tax is levied on this item. In my opinion, environmental tax should only be applied to this item," said Mr. Nghia.

Delegate Tran Hoang Ngan (HCMC) added: "Air conditioners have now become a popular household item, used by most families regardless of rich or poor. I think this is not a luxury item so we should consider taxing it."

Mr. Ngan said that gasoline should not be considered a luxury because it is an essential product and is used daily by people and businesses.

Along with the proposal to remove some items, Mr. Ngan suggested "add" some cosmetics, high-end handbags, luxury watches... to the luxury goods category subject to special consumption tax.

Source: https://tuoitre.vn/national-congress-delegates-should-also-use-conditioners-and-people-should-consult-how-to-consume-special-consumption-tax-20241122111205266.htm