Topic: excise tax

The tax rate increase aimed at preventing consumers from potential health risks.

The “pressing” problem of tax rates and the roadmap for increasing excise taxes on cigarettes was again discussed at a recent seminar jointly organized by the Vietnam Tax Consultants’ Association (VTCA) and the Vietnam Chamber of Commerce and Industry (VCCI). Analysts noted that any sudden tax increases would encourage smuggling and result in tax revenue losses, so it is necessary to introduce an appropriate roadmap.

According to the Ministry of Finance (MoF), when unusual fluctuations appear in gasoline prices, many countries around the world cut VAT and excise tax rates and even introduce subsidies to help citizens. However, for many reasons, Vietnam has only reduced environmental protection taxes.