Ministry of Health proposes to increase cigarette tax by at least 5,000 VND/pack from 2026

The Ministry of Health proposed to add an absolute tax on tobacco products at a rate of at least VND5,000/pack by 2026 and gradually increase to reach VND15,000/pack by 2030.

Increase tobacco tax to protect health

According to the latest plan, the World Health Organization (WHO) and the Ministry of Health propose to add an absolute tax on tobacco products at a minimum of VND5,000/pack, then increase it, so that by 2030 the tax on a pack of cigarettes will be VND15,000.

The above information was shared by experts at the online discussion "Increasing tobacco tax - dual benefits for the budget and health", organized by Dan Tri Electronic Newspaper on the morning of June 5.

WHO and the Ministry of Health propose to increase tax and cigarette prices by at least VND5,000/pack, from 2026.

PHOTO: LIEN CHAU

According to experts, each year more than 100,000 Vietnamese people die from tobacco-related diseases, of which nearly 19,000 deaths are due to exposure to secondhand smoke.

Tobacco is easily accessible to young people, largely due to its low price. From 2022 to 2023, total tobacco production in Vietnam increased by more than 10%. Studies estimate that tobacco use causes Vietnam to lose more than VND108,000 billion each year, equivalent to 1.14% of GDP. This total economic loss is five times higher than the budget revenue from tobacco taxes.

At the workshop, Dr. Nguyen Huy Quang, Head of the Consulting, Criticism and Social Appraisal Department, Vietnam Medical Association, said that WHO recommends that retail prices must reach a tax rate of 75%, but Vietnam currently only reaches about 38%, which is very low.

Compared to ASEAN countries, Vietnam's retail rates and prices are also low: Thailand is 78%, Indonesia is 63% and cigarette prices in these countries are much higher than in Vietnam.

Mr. Quang said that cigarettes in Vietnam are currently very cheap, a normal pack costs only about 10,000 VND, commonly 7,000 - 8,000 VND, only 1/4 of a bowl of pho. With such a cheap price, cigarettes are very accessible, especially to teenagers and the poor.

"We do not trade health for economic benefits, nor for the environment. Therefore, we should implement the plan to increase tobacco taxes from 2026 as proposed by the Ministry of Health, which will reduce 2.5 million smokers and at the same time increase budget revenue," Mr. Quang said.

Professor Nguyen Anh Tri, a National Assembly delegate from Hanoi, said: "We have increased taxes three times, but they have not been effective, cigarette prices are still too cheap. Regarding cigarette taxes, we should increase them immediately, strongly and regularly. If possible, we should implement them from 2026."

WHO and the World Bank assess that price and tax policies are the most effective tools to reduce tobacco consumption, accounting for up to 50% of the effectiveness in reducing smoking rates, especially among adolescents. However, the special consumption tax on tobacco in Vietnam is still low.

Source: https://thanhnien.vn/bo-y-te-de-xuat-tang-thue-thuoc-la-it-nhat-5000-dong-bao-tu-2026-185250605130423914.htm