The Vietnam Tobacco Association (VTA) has asked the government to delay raising the excise tax on tobacco until smuggling is “considerably” reduced, news website VnEconomy reported on Wednesday. The association made its recommendation after both the Ministry of Finance and the Ministry of Health proposed increasing the tobacco tax to 105% of the per-pack retail price from the current 65%, saying that the move is needed to curb smoking in Vietnam.
Vu Van Tien, deputy director general of the Vietnam National Tobacco Corporation, was quoted at a recent press conference as saying that local businesses face huge problems caused by rampant smuggling. Increasing the excise tax will only exacerbate smuggling given that Vietnamese people are all tightening their belts, he said.
According to the finance ministry, there are 15 million smokers in Vietnam--more than 16.6% of the country’s population. Official figures show that smoking killed 40,000 people in Vietnam in 2008, and the death toll is expected to increase to 50,000 by 2023. (Thanhniennews.com June 20)
