Making tobacco taxation work in Vietnam
17 million More than 17 million Vietnamese people smoke, and 40,000 of them die from smoking-related diseases each year. Vietnam is currently among the countries with the highest prevalence of tobacco use in the world.
A tax that trickles down Results suggest that the cigarette tax is not quickly passed on to consumers. One possible reason for this delay is that stores stockpile cigarettes prior to a tax change. There are reasons to believe that Vietnamese sellers practice stockpiling as well, given that the government announced the 2019 excise tax increase as early as 2013.
Making the most of taxation Two key recommendations emanated from this study: 1) Significantly raise tobacco taxes to make cigarettes increasingly expensive (less affordable); 2) Ensure the tax structure includes specific excise taxes to reduce price variations between brands.
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