The Ministry of Health proposed that by 2030 the absolute tax rate must reach 15,000 VND/pack of cigarettes and the product tax must be equal to 75% of the factory price.
The above information was given at a workshop providing information on the harmful effects of tobacco on health and the role of tax policy in controlling consumption organized by the Ministry of Information and Communications.
Total domestic tobacco production output in 2022 and 2023 increased by 10% while tobacco prices are very cheap. Currently, the plan of Ministry of Finance The proposed absolute tax rate by 2030 is 10,000 VND/pack; the Tobacco Association is 3,000 VND/pack and the Ministry of Health is 15,000 VND/pack to reduce the smoking rate in men to below 36% by 2030.
Studies show that increasing tobacco taxes and prices is a solution that is up to 60% effective in reducing tobacco use. In particular, applying excise tax on tobacco will bring in an additional 29,000 billion VND by 2030.
According to the World Health Organization, smoking is the leading cause of death. Cigarette smoke contains 69 substances that cause cancer, cardiovascular disease, respiratory disease and affect the reproductive health of both men and women. Tobacco use causes 8 million deaths each year worldwide.
In Vietnam, although we have made many efforts and achieved initial results in preventing and combating the harmful effects of tobacco, Vietnam is still one of the 15 countries with the highest rate of adult men smoking in the world and ranks 3rd in the ASEAN region.
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