Updated  
April, 17 2014 08:57:28

Tobacco lobby pushes for tax increase delay

HCM CITY (VNS)  — Increasing the special consumption tax on tobacco is essential but should not be done next year since smuggling is rampant, cigarette companies and the Viet Nam Tobacco Association told a seminar late last week to discuss amendments to the Law on Special Consumption Tax.

They said the smuggling would increase further and that the tax should only be increased when contraband can be kept out.

Pham Kien Nghiep, general secretary of the Viet Nam Tobacco Association, said between 2005 and 2009, when the tax was hiked by 20 percentage points (from 45 per cent to 65 per cent), cigarette smuggling jumped by 80 per cent.

An expert said that the hike must be effected only in 2016 and the tax rate must not be above 80 per cent.

But the ministries of Finance and Health rejected their arguments, saying the time has come to increase the tax.

Smoking damages human health, they said.

Viet Nam has one of the highest smoking rates in the world, with more than 47 per cent of men aged over 15 and 1.4 per cent of women using tobacco.

The finance ministry plans to increase the tax on tobacco products by 10 percentage points to 75 per cent by July 2015, and by another 10 per cent in 2018.

It considered and rejected a second plan involving a combined excise duty of VND500 per pack and increasing the current ad valorem tax rate by 5 percentage points once each in July 2015 and 2018.

But it said it would continue to talk to companies and business groups.

It will submit a draft to the Government next month and the National Assembly in October.

If approved, the amendments will take effect in July 2015. —VNS

Send Us Your Comments:
Name:
Your E-mail address:
Title:
 

VietNamNews may edit your comments and not all emails will be published.

Highlight

Experts slam failure to save old trees Experts slam failure to save old trees

Distinguished scientists and experts in the field of urban planning raised many challenges at a conference yesterday to review Ha Noi's urban tree planning.

Whistleblowers to be rewarded up to US$160,000 1    Whistleblowers to be rewarded up to US$160,000

The Ministry of Home Affairs and the Government Inspectorate have issued a joint circular announcing that whistleblowers will be rewarded up to VND3.4 billion (US$160,000).

Daewoo founder seeks to inspire youth Daewoo founder seeks to inspire youth

As you get older, you spend hours regretting each minute you wasted in your youth, which flies by.

IZ firms find pollution controls too expensive IZ firms find pollution controls too expensive

Many companies in industrial zones claim they lack capital to introduce equipment to save energy and lessen emissions.

Caves in Quang Binh will soon echo with the sounds of runners Caves in Quang Binh will soon echo with the sounds of runners

Quang Binh, home of the biggest cave in the world, Son Doong, is offering visitors treks, caving tours and a race.