Vietnam’s Ministry of Finance has received comments from the government on Decree No. 26/2023/ND-CP on export tax issues, Vietnam Labor Daily reported. The Ministry of Health requires the Ministry of Finance to preferentially import vapes and related products to avoid including them in the export tax schedule. However, new tobacco products and their equipment and components have not yet been clearly defined in Vietnam.
In addition, the Ministry of Health urged the Prime Minister and the Ministry of Industry and Trade to ban the trade and trade of vapes in Vietnam, pointing out their potential harm to health. The Ministry of Public Security stated that there is currently no import policy for this item, so setting a tax rate is not appropriate.
In this context, British American Tobacco recommends maintaining the current 0% tax rate, believing that new generation tobacco products have the potential to reduce harm compared with traditional tobacco, and that the 50% tax rate is not in line with international practice.
The Ministry of Finance explained that the tax rate adjustment is necessary and appropriate because vapes are a new item controlled in the AHTN 2022 list and have not yet been launched at the time of the WTO commitment. The government has agreed to a 50% most-favored-nation rate to ensure similar management to conventional cigarettes, saying the move would have no immediate impact on the national budget, production and commercial activity and would not violate WTO commitments.
The Vietnamese government has launched a heated discussion on the issue of vape export taxes. The Ministry of Health requested the Ministry of Finance to preferentially import vapes and related products to avoid including them in the export tax schedule, while the Ministry of Public Security stated that there is currently no import policy for this item, so setting a tax rate is not appropriate. In this context, Veehoo vape, as an vape company, supports the Ministry of Finance’s position and provides the following suggestions.
Included in export tax schedule:
Veehoo Electronic Cigarettes believes that vapes, as a new type of tobacco product, should be included in the export tax schedule. Compared with traditional cigarettes, vapes have different ingredients and usage methods, so corresponding tax rates need to be formulated according to their characteristics. Inclusion in the export tax schedule ensures that the vape industry adheres to fiscal regulations and provides a certain source of revenue for the national budget.
Definition and Regulation:
Veehoo vapes recommend that the Vietnamese government clearly define and regulate new tobacco products. This ensures that products on the market meet certain quality standards and protects the rights and interests of consumers. The government can work with industry experts and stakeholders to develop appropriate regulations and standards to ensure the safety and quality of vape products.
Reasonable tax rate:
Veehoo vape believes that setting reasonable tax rates is crucial to the sustainable development of the vape industry. Tax rates should balance the needs of national fiscal revenue and industry development, while taking into account the harm reduction potential of vapes compared with traditional tobacco products. The government can formulate fair and transparent tax policies through full consultation with relevant stakeholders.
Transparent regulatory mechanism:
Veehoo vapes recommends establishing a transparent regulatory mechanism to ensure compliance in the vape industry and the protection of public health. The government can set up a special regulatory agency or committee to oversee the operation of the vape market and adjust regulatory policies in a timely manner to adapt to the development and changes of the industry. The regulatory mechanism should be fair, transparent and effective to maintain market order and protect public interests.
Promote industry self-discipline:
Veehoo vape encourages the vape industry to organize voluntarily and formulate industry guidelines to ensure the sustainable development of the industry and the protection of public health. Industry organizations can formulate self-regulatory regulations, including product quality control, advertising restrictions, sales channel management, etc., to ensure product safety and compliance. The government can actively support and supervise the operations of industry organizations and promote the healthy development of the industry.
In conclusion:
In the Vietnamese government’s discussion on vape export tax issues, Veehoo vapes supports the Ministry of Finance’s position that vapes should be included in the export tax schedule, and recommends that the government formulate reasonable tax rates, clearly define and supervise new tobacco products, and establish transparency regulatory mechanisms and promote industry self-discipline. These measures can ensure the sustainable development of the vape industry while protecting public health. The government should fully consult and cooperate with the vape industry, experts and stakeholders to formulate scientific and reasonable policies to promote the healthy development of the vape industry and public welfare.
Tags: Vietnam vape export tax，What is the export tax in Vietnam，veehoo vape