Vietnam will broadly increase the level of subsidies for health insurance cover according to a draft of health insurance laws to be approved by the current session of the National Assembly (NA).

In Vietnam, workers are covered under a compulsory health insurance program, which requires a monthly fee of 3 percent of the employee’s salary.

This amount is jointly paid by the employee and his or her company.

Opinions differed about whether the fees should be phased out completely by 2010 or 2012, instead of 2014 as regulated in the draft law, Chairwoman of the NA’s Commission for Social Affairs Truong Thi Mai said Tuesday in her report.

Meanwhile, others proposed the state should subsidize all farmers’ health insurance fees as tens of millions of farmers can’t afford to pay them, Mai said.

Their eligibility and subsidy rates should be tested according to their incomes, said legislator Bui Sy Loi. The NA also discussed Tuesday the amendment of the draft law on special consumption tax (SCT). A majority said SCT should not be cut for draught beer, as its quality could not be monitored.

NA representative Tran Dong A from Ho Chi Minh City said draught beer’s SCT should be increased because the easy addition of toxic preservatives could damage health.

Other deputies also said there shouldn’t be such a drastic cut on draught beer’s SCT.

The draft law on SCT suggested cutting taxes on draught beer to 45 percent from the current 75 percent.

NA representatives also said SCT should not be imposed on air-conditioners, as they were essential to improving living standards.

Karaoke services should also be granted the SCT waiver as they are an entertainment rather than an essential service.

The country should increase regulations regarding karaoke rather than tax it, Vu Hong Anh said.

Many NA representatives also said the government should settle on a permanent SCT for cars, instead of changing it all the time, as it hurts business.

Reported by Ngan Anh