ANTD.VN - The Ministry of Finance is still finalizing a proposal to the government to impose a special consumption tax on online games due to the harmful effects they cause to players' health.
In the draft proposal for the Law on Special Consumption Tax that has just been sent by the Ministry of Finance to the Ministry of Justice for review, the Ministry of Finance continues to maintain its viewpoint of adding online game services to the list of subjects subject to special consumption tax (SCT).
The aim of this tax is to limit the production and consumption of goods that are harmful to health and society, as well as to regulate certain luxury goods.
The Ministry of Finance said that during the consultation process, there were 90 opinions in agreement and 10 other opinions (suggesting that there should be more research, impact assessment, more convincing information, or suggesting that online games should not be included in the special consumption tax).
Oppositions to this proposal (Ministry of Information and Communications, VNG Corporation, Vietnam E-Sports and Entertainment Association, Ministry of Culture, Sports and Tourism, VCCI) stated that: Online games are services encouraged to develop in the National Digital Transformation Program until 2025, with a vision to 2030;
At the same time, this is a field with the potential to become a smokeless industry in Vietnam when 5/10 of the largest game publishing enterprises in the region are Vietnamese enterprises. Revenue in 2022 of the Southeast Asian region is 4.5 billion USD, of which in Vietnam alone is 507 million USD.
Opponents also argue that the tax will lead to a shift in consumer behavior as players will choose games provided by foreign businesses; at the same time, it will also encourage Vietnamese businesses to move their headquarters abroad.
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Ministry of Finance maintains its stance on imposing special consumption tax on online game service businesses. |
However, the Ministry of Finance still believes that imposing special consumption tax on this service business is necessary. The Ministry cited a research report by the Institute of Mental Health, Bach Mai Hospital showing that, besides positive impacts, online games also have many negative impacts on players, especially teenagers.
In terms of physical health, online games can lead to overweight, obesity, vision, and musculoskeletal problems; and also cause mental health problems such as: impact on mental development, mental disorders, depression, addiction, etc.
Therefore, it is necessary to include online games in the group of subjects subject to special consumption tax to orient consumption as well as expand new revenue sources for the state budget.
Regarding concerns about shifting consumer behavior (players choosing foreign games) or encouraging domestic online game providers to move their headquarters abroad, the Ministry of Finance said this is an inappropriate opinion.
According to regulations, online games provided in Vietnam must be released by domestic enterprises.
Specifically, current law stipulates that enterprises wishing to do online game business must meet the following conditions: Enterprises established in Vietnam and granted conditional business investment lines; in case foreign enterprises wish to provide online games in Vietnam, they must establish enterprises in accordance with Vietnamese law.
For businesses providing unlicensed online games (pirated games), the Ministry of Information and Communications needs to strengthen management and take measures against related units to review and remove them.
It is worth noting that the Ministry of Finance believes that even now, when there is no policy on special preferential treatment for online game businesses, Vietnamese enterprises still choose to set up headquarters abroad to produce games.
“There are many factors that influence a business’s decision to invest abroad, such as reputation, better company position abroad, administrative procedures, etc. 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 emphasized.
Therefore, the Ministry of Finance maintains the proposal to add "licensed online electronic game service business in Vietnam according to regulations" to the subjects subject to special consumption tax.
The Ministry believes that the management of illegal games requires increased management by specialized ministries. The Ministry of Information and Communications needs to focus on reforming licensing procedures to attract more players.
Currently, revenue from online game services in Vietnam is growing 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.
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