Vietnam’s National Assembly passed a new law significantly raising the Special Consumption Tax on tobacco, alcohol, and beer starting January 1, 2026. The law introduces a tax roadmap for tobacco products from 2027 to 2031, adding absolute tax amounts on top of existing percentage-based taxes for the first time.
Under the new plan:
- Cigarettes: Tax increases by VND 2,000 ($0.08) per pack annually, reaching VND 10,000 ($0.40) per pack by 2031.
- Cigars: Starting at VND 20,000 ($0.80) per cigar in 2027, rising to VND 100,000 ($4) per cigar in 2031.
- Other tobacco forms (e.g., pipe or shredded tobacco): Set at VND 20,000/100g or 100ml in 2027, increasing to VND 100,000 by 2031.
This is the first time Vietnam will implement a structured absolute tobacco tax, following the lead of other countries around the globe. Prior to this, only ad valorem taxes applied.