Ms. Angela Pratt, WHO representative in Vietnam, emphasized that without decisive action, Vietnam will find it difficult to achieve the goal of reducing the male smoking rate to below 36% by 2030.
The WHO expert issued the warning after recommending a 75% increase in the excise tax and implementing a specific tax of VND15,000 ($0,625) per cigarette pack by 2030.
Currently, taxes make up only 36% of the retail price of cigarettes in Vietnam, compared to the global average of 62%. Low cigarette prices have made tobacco highly accessible, particularly to youth and low-income individuals. From 2010 to 2022, Vietnam’s GDP per capita tripled, while the price of the most popular cigarette brands increased by only 55%.
The proposal is expected to lower the male smoking rate to 37.5% by 2030 compared to 2020 levels, which translates to 2.5 million fewer adult smokers by 2030 than under current taxation policies, Ms. Angela Pratt highlighted.
This aggressive taxation strategy is projected to significantly boost annual tax revenue, with estimates suggesting an additional VND29 trillion annually by 2030 compared to 2020, 15 times more than maintaining the current tax rate, she added.
The WHO expert also highlighted that Vietnam’s tobacco industry still relies on importing raw tobacco leaves, with the 2023 import quota set at 68,414 tons. Therefore, increasing taxes is unlikely to impact tobacco farmers directly.
Regarding the retail sector, most tobacco sales in Vietnam occur at multi-purpose retail outlets like grocery stores, supermarkets, and coffee shops, with few specialized tobacco retailers. The WHO representative noted that sufficiently high taxes reducing tobacco consumption would not have a long-term adverse impact on these retail points.
Vietnam remains among the 15 countries with the highest adult male smoking rates globally and one of the 15 nations with the lowest tobacco taxes. Low cigarette prices contribute to Vietnam’s annual consumption of over 4 billion cigarette packs. (NLD)