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Health campaigners hope tobacco tax hike will reduce consumption

The Ministry of Health on May 30 held a meeting on the implementation of tax and retail price rises for tobacco products, in a bid to reduce consumption, in response to World No-Tobacco Day (May 31).
The Ministry of Health on May 30 held a meeting on the implementation oftax and retail price rises for tobacco products, in a bid to reduceconsumption, in response to World No-Tobacco Day (May 31).

TheWorld Health Organisation (WHO) says that tobacco smoking annuallyclaims nearly 6 million lives around the world, including 600,000 whoare killed by passive smoking, Deputy Minister Nguyen Thi Xuyen statedat the meeting.

She expressed concern that the number is likelyto reach 8 million by 2030. It is believed that up to 40,000 people dieannually in Vietnam from smoking.

Vietnam ratified the WHOframework convention on tobacco control in 2004 and promulgated the lawon prevention and control of tobacco harms in 2012, with a determinationto protect local people’s health, Xuyen noted.

She called onministries, agencies, organisations and individuals to work together toenforce no-smoking regulations at public places. Part of the law makingsmoking in bars and restaurants illegal has been largely ignored in manyplaces.

The tobacco tax in Vietnam currently accounts for 41.6percent of the retail price, a low rate compared to other countries,such as France (80 percent), Germany (73 percent) and Australia (60percent).

Research on tobacco use among Vietnamese youthhas shown that the smoking rate has increased. For example 21.6 percentof the nation’s smokers are young men aged from 16-24.

Thetotal economic burden caused by the five main tobacco-related diseasesin Vietnam was over 23 trillion VND (1.08 billion USD) in 2011,equivalent to 0.91 percent of the country’s GDP.

Thus, Xuyendeclared that an increase in the tobacco tax is an important measure torestrict tobacco consumption among Vietnamese people, particularlyyoungsters.

To this effect, the ministry has proposed a road map for the increase of taxation on tobacco, the official added.

Under the plan, a special tobacco consumption tax would be imposed at65 percent in 2015, gradually increase to 105 percent during the 2015-17period, and reach 145 percent for the next two years. The ministrywould also consider tax adjustments in 2020.

As a result,retail prices may rise by 21 percent and 17 percent for the 2015-17period and the following two years, respectively, higher than theaverage per-capital income in the periods.

On the occasion,the ministry, in co-ordination with the Ho Chi Minh Communist YouthUnion, awarded prizes to nine winners of a competition to make videoclips, photos and posters which depict the ill effects caused by smokingand appeal to local people to comply with the law on prevention andcontrol of tobacco harms.-VNA

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