The most important fact about the special consumption tax on sugary drinks is a correction: this is no longer a proposal. Special Consumption Tax Law 66/2025/QH15 (amended by Law 09/2026/QH15) has brought soft drinks with sugar content above 5g/100ml into the taxable scope at 8 percent from 1 January 2027 and 10 percent from 1 January 2028. At the time of writing (October 2026), enterprises have just over a year to prepare — enough time for product reformulation, but not enough to wait for another round of “will the policy pass”.
Which drinks enter the scope: the 5g/100ml threshold is the line
The taxable test attaches to the product’s sugar content: drinks in the sugary soft drink group under the law with sugar content above 5g per 100ml fall within SCT scope. Most carbonated soft drinks, energy drinks, bottled sweetened teas and coffees, and blended juice drinks with added sugar on the market today sit above this threshold. Certain drink groups are placed outside the taxable scope under the law’s detailed provisions and guidance (such as milk and milk products, and certain drinks for special nutritional purposes) — enterprises must map their product catalogue against the detailed provisions rather than guessing by trade name, because two products both called “bottled tea” with different sugar contents and classifications produce different tax outcomes.
The computation method is a percentage rate on the SCT taxable price (the producer’s selling price excluding VAT, or the import price plus import duty for imports) — not a specific levy per gram of sugar. The consequence is that a high-priced product bears more absolute tax than a cheap one at the same sugar content, and reducing sugar content to at or below the 5g/100ml threshold is the only formula route fully out of the taxable scope.
Reformulation or pricing strategy: the choice problem
Enterprises have three non-exclusive options. One is reformulation — cutting sugar below the 5g/100ml threshold by direct reduction or partial substitution with sweeteners — taking the product out of the taxable scope; in exchange come taste-change risk, recipe research costs, label re-registration and product declaration, and stability testing time. Two is keeping the recipe and building a pricing strategy: passing part or all of the tax into the selling price, combined with smaller pack sizes or portfolio restructuring to hold psychological price points. Three is a mixed portfolio strategy: the flagship line reduces sugar to hold price, the premium line keeps its recipe with tax-reflecting prices, and a new zero-sugar line rides the consumption trend.
The decision needs data, not instinct: price elasticity per product line, the share of sweetness-sensitive consumers, reformulation cost per SKU and its payback period, and competitor behaviour (if the whole industry raises prices together, the share-loss risk of passing through tax is far lower than when raising alone). Enterprises should start testing the actual sugar content of the entire catalogue during 2026 — many products “assumed below threshold” in fact sit at or above it when measured by the standard method.
The application roadmap and the 2026 task list
The enacted roadmap: 8 percent from 1 January 2027 and 10 percent from 1 January 2028. Goods produced or imported before the effective milestone are outside this new tax; taxable goods declare and pay SCT at the production or import stage like other SCT items. Enterprises must manage inventory around the 1 January 2027 line and sugar-content labelling on packaging — the nutrition label’s sugar figure is one of the reference points when tax and market authorities check taxable status.
The 2026 task list comprises: testing and confirming the sugar content of the entire catalogue by the standard method; deciding the strategy per SKU (reformulation, price increase or mixed) before the final quarter; preparing re-registration and re-declaration files for reformulated SKUs; updating pricing and invoicing systems and SCT declaration registration for SKUs entering the scope; and communicating the 1 January 2027 price changes to the distribution system early enough to avoid new-year distribution contract conflicts.
Frequently Asked Questions
1. Which drinks may be taxed (soft drinks, bottled tea and coffee)?
Under SCT Law 66/2025/QH15, drinks in the soft drink group with sugar content above 5g/100ml are in scope — covering most carbonated soft drinks, energy drinks, and bottled sweetened teas and coffees on the market. Certain groups such as milk and milk products and special nutritional drinks sit outside under the detailed provisions; enterprises must map by standard-measured sugar content and product classification, not by trade name.
2. What is the proposed rate and computation method?
No longer a proposal: the enacted rate is 8 percent from 1 January 2027 and 10 percent from 1 January 2028, computed as a percentage rate on the SCT taxable price (the producer’s selling price or the import price plus import duty), not a specific levy per gram of sugar. Reducing sugar content to no more than 5g/100ml is the formula route out of the taxable scope.
3. Should enterprises prepare reformulation (sugar reduction) or a pricing strategy?
Not necessarily one or the other: the common strategy is mixed — reformulation for price-sensitive flagship lines to exit the taxable scope, recipe retention with price adjustment for less sensitive premium lines, and a new zero-sugar line. Decide per SKU on price elasticity, recipe change costs and competitor behaviour, after testing the actual sugar content of the whole catalogue.
4. When is the policy expected to take effect if passed?
It has been passed, so the dates are official: effective from 1 January 2027 at 8 percent, rising to 10 percent from 1 January 2028, under SCT Law 66/2025/QH15 (amended by Law 09/2026/QH15). As of October 2026 the obligation has not yet arisen — enterprises are in the final preparation window before effectiveness.
This article has been quality-reviewed by the FLAW AI Legal Council
