For experts and analysts, the answer is a resounding 'no' while the Trans-Pacific Partnership could render anti-smoking laws toothless Promotion girls dance at a beverage fair in Hanoi. A government proposal to increase excise taxes on alcohol and tobacco is unlikely to curb consumption in a country where people's smoking habits die hard and their thirst for beer is just as difficult to quench, experts say. PHOTO: AFP A recent government proposal to increase special consumption taxes on alcohol and tobacco is unlikely to curb consumption in a country where people's smoking habits die hard and their thirst for beer is just as difficult to quench, experts say. Given Vietnam's current tax regime, the planned hikes by up to 30 percentage points pale in comparison with those in Vietnam's neighborhood and are too paltry to hit smokers and drinkers where it hurts most - their pockets, experts say. They add that such tax increases would turn out to be even more cosmetic if … [Read more...] about Will new taxes curb smoking and drinking in Vietnam?
What is an excise tax
Hoàng Trọng Thủy, an expert from the Việt Nam Agriculture Technique Science Association, talks to Việt Nam News about achievements of the agriculture sector in 2017. How would you assess the agriculture sector’s performance this year7? Despite many difficulties in 2017, like natural disasters and limited output markets, the agriculture sector has recorded impressive achievements with an expected growth of three per cent and the export turnover of agriculture, forestry, fisheries products reaching US$32 billion. The best part is that export of fruits and vegetables is expected to grow by 43 per cent over last year. The next best part is fisheries export, which could reach $8 billion by the end of the year. Meanwhile, quality has been given top priority for domestic consumption. We can say that 2017 is the year when a balance was achieved between agriculture export and production for local demand. What made these achievements possible? From early this … [Read more...] about An impressive year for agriculture sector
(Ho Chi Minh City). Before joining AmCham, Herb was commercial attaché at the US Embassy in Hanoi and the US consulate general in Ho Chi Minh City, regional director, East Asia and Pacific, the US Department of Commerce, based in Washington DC and commercial attaché in Osaka, Tokyo, and Bangkok successively. Since the Ministry of Finance's (MoF) excise tax draft amendment was published for public consultation, several concerns have been raised about tax and the impact it could have on production and consumer choice. What's your opinion on this? First, we appreciate the opportunity for discussion and consultation. We have had opportunities to meet and discuss the issue with the MoF, the Ministry of Health, the Ministry of Planning and Investment, and at the forum held on March 28. We look forward to another opportunity for discussion in Ho Chi Minh City on April 11. With the perspective on the democratic and transparent policy-making process, as "the … [Read more...] about Fizzy drinks excise tax threat falls flat
The National Assembly Standing Committee has just agreed to an average annual 5 per cent increase in special consumption tax (SCT) for cigarettes, beer and wine over the next few years. What effect will this tax rise have on businesses and consumers when the SCT is applied?Gradual increases from 2015 through to 2017 for tobacco and 2018 for beer are essential in helping to off-set the risk of creating a tax shock that can increase smuggling and illicit trade. International experiences demonstrate that greater levels of smuggling and illicit trade have reduced the capacity to raise excise revenues. This is particularly relevant within economic communities, with greater trade facilitation across already-porous borders.However, it is essential that incremental and gradual increases to the SCT rate of 5 per cent per year are applied across the board to all excise tax categories. Higher-up front SCT increases (greater than 5 per cent) on other products risk a tax shock that can have … [Read more...] about Weighing up the pros and cons of the ‘vice tax’ rise
Strengthening tax systems has emerged as a key priority in improving the resilience of the national economy and supporting its growth objectives. Viet Nam News reporter Mai Huong interviews Alex Mourmouras, chief of the ASEAN1 division at the IMF’s Asia Pacific Department and the Fund’s Viet Nam mission chief, about tax reforms.Could you tell us about the latest developments regarding international tax reform in the ASEAN region?Mobilising domestic revenue sources has emerged as an important priority in supporting national efforts to promote inclusive growth. The scope of reforms encompasses direct taxes, which include personal and corporate income taxes; indirect taxes, such as value added and excise taxes, and other revenue sources, including property and land taxes and fees.For Viet Nam and other ASEAN countries in which export-oriented manufacturing is an important growth driver, the tax treatment of international companies with direct inward investments in the region … [Read more...] about Tax reform should focus on raising tax revenues