The Ministry of Health has proposed a road map for the increase oftaxation on tobacco, with the aim of reducing consumption.
According to the plan, a special tobacco consumption tax would beimposed at 65 percent in 2015, gradually increase to 105 percent duringthe 2015-17 period, and reach 145 percent for the next two years. Theministry would also consider tax adjustments in 2020.
As aresult, retail prices may rise by 21 percent and 17 percent for the2015-17 period and the following two years, respectively, higher thanthe average per-capital income in the periods.
In Vietnam, thetobacco tax currently accounts for 41.6 percent of the retail price, alow rate in comparison to other countries such as France (80 percent),Germany (73 percent) and Australia (60 percent).
Research ontobacco use among young people in Vietnam showed that the smoking ratehas increased, especially among youngsters. For example 21.6 percent ofsmokers are young men aged from 16-24.
The total economic burdencaused by five tobacco-related diseases in Vietnam was over 23 trillionVND in 2011, accounting for 0.91 percent of the country’s GDP.
Vietnamratified the World Health Organisation’s framework convention ontobacco control in 2004 and promulgated the law on prevention andcontrol of tobacco harms in 2012.
On January 25, 2013, the PrimeMinister issued a decision approving the national strategy on tobaccoharm control and prevention to 2020, which sets out a target of reducingsmoking among young people to 18 percent by 2020 from 26 percent atpresent. The strategy also targets reducing the male smoking rate to 39percent from 47.4 percent while lowering the female rate to 1.4percent.-VNA
According to the plan, a special tobacco consumption tax would beimposed at 65 percent in 2015, gradually increase to 105 percent duringthe 2015-17 period, and reach 145 percent for the next two years. Theministry would also consider tax adjustments in 2020.
As aresult, retail prices may rise by 21 percent and 17 percent for the2015-17 period and the following two years, respectively, higher thanthe average per-capital income in the periods.
In Vietnam, thetobacco tax currently accounts for 41.6 percent of the retail price, alow rate in comparison to other countries such as France (80 percent),Germany (73 percent) and Australia (60 percent).
Research ontobacco use among young people in Vietnam showed that the smoking ratehas increased, especially among youngsters. For example 21.6 percent ofsmokers are young men aged from 16-24.
The total economic burdencaused by five tobacco-related diseases in Vietnam was over 23 trillionVND in 2011, accounting for 0.91 percent of the country’s GDP.
Vietnamratified the World Health Organisation’s framework convention ontobacco control in 2004 and promulgated the law on prevention andcontrol of tobacco harms in 2012.
On January 25, 2013, the PrimeMinister issued a decision approving the national strategy on tobaccoharm control and prevention to 2020, which sets out a target of reducingsmoking among young people to 18 percent by 2020 from 26 percent atpresent. The strategy also targets reducing the male smoking rate to 39percent from 47.4 percent while lowering the female rate to 1.4percent.-VNA
