The Ministry of Finance still decides to impose special consumption tax on online games because they are addictive and affect players' health, despite businesses' concerns about being stifled.
This content is mentioned in the draft proposal for the Law on Special Consumption Tax that the Ministry of Finance has just sent to the Ministry of Justice. The goal of this tax, according to the Ministry of Finance, is to limit the production and consumption of goods that are harmful to health and society, as well as to regulate some luxury goods.
After the consultation process, there were 90 opinions in agreement, 10 suggestions for further consideration or opposition to imposing special consumption tax on online game business.
As one of the agencies supporting the tax, the Ministry of Health and the Institute of Mental Health, Bach Mai Hospital said that online games have many negative impacts on the physical and mental health of players, especially teenagers.
According to the Institute of Mental Health, Bach Mai Hospital, the rate of game addiction in Vietnam is 8.5%. Games also cause mental disorders such as depression, anxiety and stress. The rate of players suffering from depression is 12%, anxiety is 13.5% and stress-related disorders is 17%.
These agencies also believe that online game addiction reduces the ability to communicate socially, causes insomnia, affects academic performance, work and even increases the risk of schizophrenia. Accordingly, the rate of gamers with poor communication skills is nearly 22% and poor social skills is 18%. The rate of gamers with insomnia is nearly 16% and sleep disorders is 12%.
Game development studio of a famous publisher in Vietnam. Photo: Quynh Tran .
However, the Ministry of Information and Communications, VNG Corporation, Vietnam Electronic Entertainment Association, Ministry of Culture, Communications and Tourism, and VCCI do not agree to impose special consumption tax on this "smokeless business".
The Government Inspectorate, the Ministry of Public Security, and the Ministry of Foreign Affairs also said that there needs to be more convincing research and impact assessment on taxation.
According to the opposition group, online games are a service that is encouraged to develop in the national digital transformation program, with the potential to become a smokeless industry in Vietnam. 5 out of 10 largest game publishers in the region are Vietnamese enterprises.
Taxation does not encourage domestic gaming businesses to increase investment and development, while this is one of the few industries with great potential for development. In addition, domestic businesses will lose competitiveness, causing them to tend to move their headquarters abroad.
Currently, game revenue comes from both users and advertising. Therefore, tax management, according to some agencies, will face many difficulties. In addition, the opposition group also asserted that no country applies special consumption tax to online game business.
The Vietnamese gaming industry is a potential industry that needs to be facilitated by the government to develop. The Ministry of Information and Communications affirms that there is enough legal basis and other management tools to overcome the negative aspects of gaming.
However, the Ministry of Finance believes that even without a special consumption tax policy on online game business, Vietnamese businesses still choose to set up headquarters abroad to produce games.
According to the ministry, there are many factors that influence a business's decision to invest abroad, such as reputation, better company status abroad, and administrative procedures. Therefore, the idea that applying a special consumption tax policy will encourage Vietnamese businesses to shift their investment abroad is inappropriate.
The Ministry of Finance also said that the online gaming industry has grown over the years. In 2019, revenue reached nearly 7,581 billion VND, in 2021 it reached 11,486 billion VND, and in 2022 it is expected to reach 12,000 billion VND.
According to current regulations, this is a conditional business. The Ministry of Finance proposes to collect special consumption tax on games licensed to operate in Vietnam, provided by both domestic and foreign enterprises. As for illegal games, or pirated games, according to the Ministry of Finance, it is necessary to strengthen management by specialized ministries. The Ministry of Information and Communications needs to focus on reforming licensing procedures to attract businesses.
Therefore, the Ministry of Finance still maintains its view on including "licensed online electronic game service business in Vietnam according to regulations" as subject to special consumption tax.
Quynh Trang
Source link
Comment (0)