A World Health Organization (WHO) expert has raised concerns about the low tobacco taxes in Việt Nam, arguing that higher taxes are essential to reduce smoking rates and improve public health. Dr. Nguyễn Tuấn Lâm, a technical officer for the WHO’s Tobacco Free Initiative in Việt Nam, emphasized that the current tax rates are insufficient to deter smoking. He highlighted the need for significant tax increases to achieve the national target of reducing the smoking rate among the male population to below 36% by 2030. The Ministry of Finance’s proposed tax options are a step in the right direction, but WHO recommends even stricter measures.
Current Tobacco Tax Proposals
The Ministry of Finance (MoF) has proposed two options for increasing tobacco taxes in Việt Nam. Option 1 suggests an initial absolute tax increase to VNĐ2,000 (8 US cents) per cigarette pack by 2026, with an additional VNĐ2,000 increase each year until 2030, reaching VNĐ10,000 ($0.4) per pack. Option 2 proposes a higher initial tax of VNĐ5,000 (20 US cents) per pack, with a VNĐ1,000 increase each year, also reaching VNĐ10,000 per pack by 2030.
Dr. Nguyễn Tuấn Lâm supports the MoF’s proposals but believes they do not go far enough. He advocates for an even higher initial tax of VNĐ5,000 per pack, increasing to VNĐ15,000 ($0.6) per pack by 2030. This stricter approach is expected to more effectively reduce smoking rates and prevent an additional 2.5 million new smokers by 2030.
The WHO’s recommendations are based on models developed in collaboration with the MoF and the Ministry of Health (MoH). These models predict that the proposed tax increases will help reduce the smoking rate among the male population to 37.5%, nearly achieving the national target. However, the WHO’s stricter option aims to push this rate below 36%, aligning with global best practices for tobacco control.
Economic and Health Benefits
Increasing tobacco taxes is widely recognized as one of the most effective measures to reduce smoking rates. Higher taxes make tobacco products less affordable, particularly for young people and low-income smokers, who are more sensitive to price changes. This can lead to a significant reduction in tobacco consumption and, consequently, a decrease in tobacco-related diseases and deaths.
In addition to health benefits, higher tobacco taxes can generate substantial revenue for the government. This revenue can be used to fund public health programs, including smoking cessation services and health education campaigns. The economic benefits of reduced healthcare costs and increased productivity due to lower smoking rates further justify the need for higher tobacco taxes.
The WHO’s recommendations for Việt Nam are based on successful examples from other countries. For instance, countries that have implemented significant tobacco tax increases have seen marked reductions in smoking rates and improvements in public health. By following these examples, Việt Nam can achieve similar outcomes and protect the health of its population.
Challenges and Future Steps
Implementing higher tobacco taxes in Việt Nam faces several challenges. One of the main concerns is the potential increase in cigarette smuggling, as higher taxes may incentivize illegal trade. To address this issue, the government needs to strengthen enforcement measures and enhance border controls to prevent smuggling.
Another challenge is the opposition from the tobacco industry, which often lobbies against tax increases. The government must remain steadfast in its commitment to public health and prioritize the well-being of its citizens over industry interests. Public support and advocacy from health organizations can play a crucial role in countering industry influence and ensuring the successful implementation of higher tobacco taxes.
Moving forward, Việt Nam should continue to monitor the impact of tobacco tax increases and adjust policies as needed. Regular evaluations and data collection will help assess the effectiveness of tax measures and identify areas for improvement. By adopting a comprehensive approach to tobacco control, including higher taxes, public education, and strong enforcement, Việt Nam can achieve its national health targets and reduce the burden of tobacco-related diseases.
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