Proposal for businesses to contribute to the Disease Prevention Fund

The Ministry of Health proposes to establish a Disease Prevention Fund from the budget, from special consumption tax on unhealthy products; or mandatory contributions from establishments producing and importing unhealthy products.

Prevent disease by collecting taxes on unhealthy products

The Ministry of Health is seeking comments on the draft Law on Disease Prevention. In the draft, the Ministry of Health proposes to establish a Disease Prevention Fund, which is a state financial fund outside the budget, exempt from paying taxes and other payments to the state budget according to the provisions of law.

The Ministry of Health proposes that the Disease Prevention Fund should come from mandatory contributions from establishments that produce and import unhealthy products, excluding tobacco.

PHOTO: LIEN CHAU

Regarding the sources of forming the Disease Prevention Fund, the draft law offers two options.

Option 1 is a fund formed from charter capital provided and supplemented annually by the state budget; from special consumption tax revenue on products that are not beneficial to health; from sponsorship and contributions from businesses, organizations and individuals; from the Tobacco Harm Prevention Fund; and from other legal sources of revenue as prescribed by law.

Option 2, in addition to the charter capital provided by the state budget, sponsorship sources, and voluntary contributions, the Disease Prevention Fund has sources from mandatory contributions from establishments producing and importing unhealthy products, excluding tobacco.

In which, this mandatory contribution is calculated as a percentage of the special consumption tax price. This tax rate is applied according to the roadmap: 1% from January 1, 2027; 1.5% from January 1, 2028. And from January 1, 2029, it will be 2%.

The mandatory contribution is declared and paid together with the special consumption tax by the establishments producing and importing unhealthy products, which are self-declared, self-calculated and self-paid into the fund's account.

According to the draft, the Disease Prevention Fund will support solving urgent problems that may arise due to pandemics; support proactive disease prevention activities; spend on disease prevention activities that the state budget cannot guarantee; and create resources for disease prevention activities.

The Fund operates not for profit; revenue, expenditure, settlement, and disclosure; subject to inspection, examination, and audit; and supervision by the Vietnam Fatherland Front and the community.

Source: https://thanhnien.vn/de-xuat-doanh-nghiep-phai-dong-quy-phong-benh-185250529094910562.htm