Vietnam Customs imposes a preferential 50% tax on imported e-cigarettes

Latest news on July 10: Vietnam has unexpectedly “cut taxes” on e-cigarettes—does this mean they are becoming legal? According to Vietnam’s Corporate Finance, the General Department of Vietnam Customs has issued documents to customs authorities in provinces and cities nationwide, providing guidance on implementing Decree No. 26/2023/ND-CP and Decision No. 15/2023/QD-TTg on export tariffs. A preferential import tax of 50% will be imposed on materials containing tobacco leaf, reconstituted tobacco, nicotine, or substitute tobacco leaf or substitute nicotine intended for inhalation without combustion, as well as other nicotine products used to deliver nicotine into the human body (including e-cigarettes).

It is understood that Decree No. 26/2023/ND-CP will take effect on July 15, 2023. According to Appendix II of Decree No. 26/2023/ND-CP issued by the Vietnamese government, the list of taxable goods includes products containing tobacco leaf, reconstituted tobacco, nicotine, or substitute tobacco leaf or substitute nicotine intended for inhalation without combustion, as well as other nicotine products used to deliver nicotine into the human body.” (This includes e-cigarette products.)