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Ministry of Health proposes to impose absolute tax of 15,000 VND/cigarette pack by 2030

(Dan Tri) - The proposed options of the Ministry of Finance are still low. According to the Ministry of Health, the absolute tax rate needs to increase from 5,000 VND/pack to 15,000 VND/pack (20 cigarettes/pack) by 2030 in addition to the 75% tax rate.

Báo Dân tríBáo Dân trí03/06/2025

Smoking rate in men slow decline

On June 3, the Press Department coordinated with HealthBridge Organization in Vietnam to organize a workshop to provide information on preventing and combating the harmful effects of tobacco with the theme "Tobacco Tax and Sustainable Development".

Master Dang Khac Loi, Deputy Director of the Press Department, said that in Vietnam, with more than 15 million smokers, our country is suffering a huge medical and economic burden, with more than 100,000 deaths each year due to active smoking and exposure to secondhand smoke.

At the same time, medical costs and economic losses are estimated at VND108 trillion per year, equivalent to about 1.1% of GDP.

The Ministry of Health proposes to impose an absolute tax of VND15,000/pack of cigarettes by 2030 - 1

Master Dang Khac Loi, Deputy Director of the Press Department (Photo: HH).

This is a threat to the economic and social development of the country.

Over the past time, although the smoking rate among adult men in Vietnam has decreased from 47.4% in 2010 to 41.1% in 2021, this reduction is still modest. Vietnam is still among the 15 countries with the highest rate of adult men smoking in the world and ranks 3rd in the ASEAN region.

One of the main reasons for the slow decline in tobacco use is that tobacco prices are too cheap, due to low tobacco taxes.

According to a report by the World Health Organization, in 2022, the tax rate on retail cigarette prices in Vietnam will only reach 36%, lower than the average of middle-income countries (59%), and among the lowest tax rates in the ASEAN region.

As people's incomes continue to rise rapidly, making tobacco prices increasingly accessible, even to low-income groups such as children, WHO and the World Bank have recommended that the tax rate on retail prices be at least 75% to be effective in reducing consumption of this harmful product.

The higher the tax increase, the greater the positive impact on health.

The Ministry of Health proposes to impose an absolute tax of VND15,000/pack of cigarettes by 2030 - 2

Taxation options and impact assessment (Screenshot).

Master - Doctor Nguyen Tuan Lam, WHO's tobacco harm prevention expert, informed that each year, tobacco takes the lives of more than 8 million people, of which an estimated one million deaths are due to passive smoking, 64% of which are women.

Tax interventions are the most effective of all policy interventions. In Vietnam, it is estimated that in 2022, tobacco taxes will only account for about 36% of retail prices, less than half of the WHO recommendation. Low taxes mean that tobacco prices in Vietnam are very low compared to other countries in the region.

He said that the proposed plans of the Ministry of Finance also contributed to reducing the smoking rate among men but did not reach the national target. Specifically, it helped reduce about 2 million smokers, but due to the increase in population, the number of people reduced was not much. This tax plan is good but not enough, a bit low.

According to Ms. Dinh Thi Thu Thuy, Deputy Director of the Legal Department (Ministry of Health), to achieve the goal of reducing the smoking rate as set out in the National Strategy on Tobacco Harm Prevention by 2030, the absolute tax rate needs to increase from 5,000 VND/pack to 15,000 VND/pack (20 cigarettes/pack) by 2030 in addition to the 75% tax rate as recommended by WHO.

This option would help achieve a tax rate of 65% of retail prices, close to the WHO recommendation (70-75% of retail prices) and help reduce the tobacco use rate among men to 36% by 2030.

The Ministry of Health continues to propose not to include in this Law regulations related to new tobacco products, taxing ml of new tobacco solution to implement the provisions in Resolution 173/2024/QH15 of the National Assembly on banning the production, trading, import, harboring, transporting, and using electronic cigarettes and heated tobacco products.

Dr. Angela Pratt, Chief Representative of the World Health Organization (WHO) in Vietnam, said that Vietnam is facing important decisions to protect people from the harmful effects of tobacco use.

The tobacco industry is using manipulative tactics, hiding the dangers of tobacco products and targeting young people through products with attractive packaging and flavors.

Evidence from around the world shows that the best way to reduce smoking – to help people say “no” to cigarettes – is to raise prices by raising taxes.

“The higher the tax increase, the greater the positive impact on health, and the more tax revenue is generated to reinvest in Government priorities to promote sustainable development.

Specifically, we recommend that in addition to the current tax rate of 75% of the factory price, an absolute tax should be applied according to a roadmap to reach 15,000 VND per pack of cigarettes by 2030," the WHO representative affirmed.

Source: https://dantri.com.vn/suc-khoe/bo-y-te-de-xuat-ap-thue-tuyet-doi-15000-dongbao-thuoc-la-vao-nam-2030-20250603110541800.htm


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