E-Cigarette Tax Cut: A Global First?

Recently, a piece of news has attracted attention,Vietnam has publicly announced a tax cut on e-cigarette imports, enjoying a 50% discount.

The country has long prohibited the import of e-cigarettes; what does this preferential tax mean?

It is reported that Vietnam's customs will impose a 50% preferential tax on imported e-cigarettes, which will officially take effect from July 15, 2023.

According to reports, the General Department of Customs has issued documents to customs offices in various provinces and cities, guiding the implementation of Decree No. 26/2023/ND-CP and Decision No. 15/2023/QD-TTg regarding export tariffs. This will impose a 50% import preferential tax on raw materials containing tobacco leaves, reconstituted tobacco, nicotine, or alternative tobacco or nicotine for inhalation without combustion, including e-cigarettes.

Previously, according to the country's laws, e-cigarettes were considered a tobacco product, and their import, production, and sale were prohibited. According to the Ministry of Health, the proportion of e-cigarette users in Vietnam increased from 0.2% in 2015 to 3.6% in 2020, with millions of users. The Department of Legal Affairs of the Ministry of Information and Communications stated that there are 15.6 million smokers in Vietnam.

However, in June of this year, the government approved a national plan to limit the use of e-cigarettes, water pipes, and other new tobacco products. It also plans to issue regulations on e-cigarettes, heated cigarettes, water pipes, and other new tobacco products, intending to impose a consumption tax on e-cigarettes, aiming to reduce the male smoking rate to below 39% between 2023 and 2025.

Vietnam's e-cigarettes, from the black market to legal imports, have also been granted preferential import taxes, which is worth global attention. Currently, there are many regions and countries where e-cigarettes are illegal; does this mean that the regulation of e-cigarettes is a global trend?