Tobacco smuggling in Vietnam tends to decline
Tobacco smuggling on the southwest border remains complicated | |
Smoking kills more than 40,000 every year in Vietnam | |
Ministry proposes tobacco tax increase to VND2,000 |
Ms. Hana Ross |
As one of the leading international experts on methods of measuring tobacco smuggling, what are the methods of measuring tobacco smuggling and appropriate methods for Vietnam?
There are many methods for measuring tobacco smuggling. In my opinion, the most appropriate methods for Vietnam is to conduct surveys to consumers and ask them what kind of tobacco they are using, how many and how much they pay? Many surveys on tobacco smuggling have been conducted in Vietnam and I think that these surveys have been done well.
Another method is to focus on monitoring the amount of smuggled tobacco over the time, for example, the difference between smuggled tobacco and legal tobacco. This method must be conducted for many years. Of course, Vietnam has implemented, but the accuracy must be monitored over many years for measuring.
Some opinions said that the tobacco tax increase will raise the tobacco smuggling. How do you think about these opinions?
The tobacco tax increase does not lead to raise smuggling, because tobacco is mainly transported from abroad into Vietnam. However, when amending tax structure to transfer into specific tax, it can lead to some companies manufacturing tobacco in Vietnam evading tax. Therefore, when applying new tax structures, the State agencies need to take measures to control these companies.
How do you analyze and assess about the relationship between tobacco tax policies and tobacco smuggling in Vietnam?
Currently, according to survey data, the smuggling in Vietnam is not a big problem. Our latest data shows that the smuggling in Vietnam tends to decline, thus creating a chance for Vietnam to increase tax. But if smuggling is better controlled with administrative aspects, it may create positive benefits, because when Vietnam controls tobacco well it raises revenues for the budget.
What do you recommend or propose to the Vietnam Government to prevent the impact of tobacco in general and continue to improve tax policies in particular as well as measures for anti-smuggling?
The amendment of Vietnam’s tax structure is done well. If transferring into specific tax, it is easy to control the production volume as well as taxable volume, because we can count them. This is the advantage of amendment of the tax structure in Vietnam.
When mentioning smuggling, we need to talk about origin of illegal tobaccos in some areas. Zet and Hero are the most common smuggled tobacco types which is concentrated in the southern provinces. Hence, the Vietnam Government needs to take measures to control well and focus on these provinces to control smuggled cigarettes at the border in the southern area. Of course, it is very difficult, but if we make an effort we will achieve success.
Need to handle the right ringleaders for tobacco smuggling VCN- The Deputy Prime Minister, Mr. Truong Hoa Binh, Head of the National Steering Committee 389 has ... |
Currently, Ministry of Finance is drafting to amend and supplement the Law on Special Consumption Tax. In the Draft, the Ministry has proposed to apply specific tax to domestically manufactured and imported tobacco besides the current tax rate. What is your opinion on this proposal?
The proposal by the Ministry of Finance on supplementing the specific tax to change tax structure is excellent, because this structure is being used in the world. However, the specific tax rate should be high enough to impact the users, as high as possible.
Thank you, Madam!
Related News
Facilitates import and export enterprises amid difficult context
09:46 | 06/04/2023 Customs
Enterprises have the right to pre-determine HS codes
09:55 | 06/04/2023 Regulations
Customs seizes 20 drug-related offences
10:23 | 05/04/2023 Anti-Smuggling
Import and export turnover across Cao Bang prospers but still exists difficulties
10:25 | 05/04/2023 Import-Export
Latest News
Corporate bonds worth 1.1 billion USD issued in March
13:55 | 06/04/2023 Finance
Tax revenue is estimated at VND 426,922 billion in the first quarter
09:56 | 06/04/2023 Finance
Nearly 400 complaints about insurance distribution through banks on Ministry of Finance hotline
14:47 | 04/04/2023 Finance
Central bank starts huge credit package for social housing projects
14:42 | 04/04/2023 Finance
More News
In Q1, State revenue estimated to rise by 1.3%
13:28 | 04/04/2023 Finance
Consider raising the level of penalties to ensure fairness and transparency in the stock market
13:27 | 04/04/2023 Finance
Central bank cuts policy interest rates to spur growth
17:43 | 02/04/2023 Finance
Ensure policies to attract investment when implementing global minimum tax
10:33 | 02/04/2023 Finance
SBV asks to issue revised decree on foreign ownership cap at Vietnamese banks
20:30 | 01/04/2023 Finance
Solutions to attract FDI when implementing the global minimum CIT
11:38 | 01/04/2023 Finance
Effective implementation of tax incentives as driving force for growth in trade turnover between Vietnam and Cuba
13:43 | 31/03/2023 Finance
Being many "hot" issues at the general meeting of shareholders of banks
09:24 | 30/03/2023 Finance
Bringing the policies on reducing land rent and water surface rent into life
15:41 | 29/03/2023 Finance
Your care
The system has not recorded your reading habits.
Please Login/Register so that the system can provide articles according to your reading needs.
Corporate bonds worth 1.1 billion USD issued in March
13:55 | 06/04/2023 Finance
Tax revenue is estimated at VND 426,922 billion in the first quarter
09:56 | 06/04/2023 Finance
Nearly 400 complaints about insurance distribution through banks on Ministry of Finance hotline
14:47 | 04/04/2023 Finance
Central bank starts huge credit package for social housing projects
14:42 | 04/04/2023 Finance
In Q1, State revenue estimated to rise by 1.3%
13:28 | 04/04/2023 Finance