Increase tobacco tax to reduce disease and poverty

Tobacco use has been causing serious consequences in terms of illness and death, threatening economic and social development in Vietnam.

Every year, Vietnam records more than 84,500 deaths from active smoking and 18,800 deaths from diseases related to secondhand smoke.

Tobacco tax in Vietnam is currently low compared to other countries in the world and compared to the general level in the region.

In particular, the majority of people who die from tobacco-related diseases are people of working age, causing enormous damage to society when they die early.

These consequences not only reduce the quality of life but also seriously affect the workforce, reducing the size and quality of Vietnam's labor force.

These negative effects are expected to become more pronounced in the next 10-20 years, as current smokers begin to experience the health impacts of tobacco use.

This is an urgent issue that threatens Vietnam’s ability to achieve its national tobacco control and health targets, while also undermining its ability to deliver on its commitments to the health-related Sustainable Development Goals (SDGs).

According to the World Bank (WB) and the World Health Organization (WHO), tobacco tax and price policies are among the most important tools in controlling tobacco consumption. Tobacco tax and price can account for up to 50% of effective smoking reduction.

However, tobacco tax in Vietnam is currently low compared to other countries in the world and compared to the general level in the region.

Vietnam has adjusted the excise tax on cigarettes three times in 2008, 2016 and 2019, but the tax increases were only 5% to 10%, and the tax base was based on low factory prices.

Therefore, the price increase caused by the tax is insignificant and not strong enough to change tobacco consumption behavior. In that context, reforming the special consumption tax on tobacco is extremely necessary and should be implemented as soon as possible.

Tobacco tax reform will save lives, reduce economic and social costs, and is an effective measure to reduce tobacco use and protect public health.

According to the World Health Organization's recommendations, to effectively reduce tobacco consumption, tobacco tax policy needs to be reformed in the direction of adding absolute tax (to switch to a mixed tax system) with a sufficiently large tax rate and adjusted to increase according to a regular roadmap.

The goal is to raise the tax rate to 75% of the retail price of cigarettes, while making cigarette prices increase in line with people's income growth.

This will be an important step towards achieving the goal of reducing tobacco use, protecting public health and reducing the burden of disease.

To emphasize the importance of increasing tobacco taxes, a representative of the Tobacco Harm Prevention Fund said that a communication campaign with the message "Increase tobacco taxes - Reduce disease and poverty" will be deployed in April and May 2025.

The campaign will promote the dual benefits of raising tobacco taxes, including reducing tobacco consumption and protecting public health.

Mass media, including television, print newspapers, online newspapers, social networks such as Facebook, YouTube, Tiktok, along with a system of nearly 9,000 LED screens in high-rise buildings in Hanoi, Da Nang and Ho Chi Minh City, will be used to widely disseminate this message.

In addition, mass organizations will participate to raise public awareness about the harmful effects of tobacco and the benefits of increasing tobacco taxes.

Increasing tobacco taxes is not only a financial measure, but also an important step in protecting public health and reducing the socio-economic burden caused by tobacco.

This policy not only protects the current generation but also contributes to creating a healthier future for future generations.

Source: https://baodautu.vn/tang-thue-thuoc-la-de-giam-benh-tat-doi-ngheo-d257063.html