The economic damage caused by tobacco far outweighs the revenue generated from taxes on tobacco products in Vietnam, reports VN Express.
According to statistics, the country spends about VND108 trillion ($4.28 billion), or nearly 1.5 percent of its gross domestic product, on tobacco-related healthcare every year. A study conducted by K Hospital revealed that 97 percent of lung cancer patients are tobacco users. Meanwhile, the World Health Organization reported that tobacco-related diseases account for around 104,300 deaths in Vietnam annually, including 19,000 deaths caused by secondhand smoking.
“Tobacco is placing a significant burden on both Vietnam’s economy and public health,” said Nguyen Thi Thu Huong from the Tobacco Control Fund under the Ministry of Health at a conference on Thursday.
She called for increased taxes on tobacco and the creation of more non-smoking spaces as key measures to combat the harmful effects of smoking. Vietnam currently taxes tobacco at 38.8 percent of the sale price, far below the 70 percent rate recommended by the WHO. The low tax rate makes tobacco easily accessible to young people and those with lower incomes, Huong added.
The WHO has been urging the country to implement a flat tobacco tax to reduce the number of smokers.