According to information from the Ministry of Justice, this agency is currently reviewing the draft Decree amending and supplementing some articles of Decree No. 26/2023 dated May 31, 2023 of the Government on export tax, import tax incentives, the list of goods and absolute tax rates, mixed taxes, and out-of-quota import taxes.
The Ministry of Public Security, the Ministry of Health have proposed tightening electronic cigarettes. Photo: NLDO
The draft Decree is being developed by the Ministry of Finance. In which, this agency proposes preferential import tax rates for electronic devices used for electronic cigarettes and similar personal vaporizers, belonging to HS code 8543.40.00.
During the review process, the Ministry of Finance found that it is necessary to apply preferential import tax rates for HS code 8543.40.00, which is electronic devices used for electronic cigarettes and similar personal vaporizers, like the import tax rates of electronic cigarette products specified in group 24.04 to limit the use of harmful products to health.
According to the Ministry of Finance, tobacco products are highly sensitive goods and need to be specially managed, as they have an impact on human health, so it is necessary to limit their use. In terms of merchandise policy, currently, at least 28 countries/territories prohibit all forms of buying, selling, producing, and importing electronic cigarettes. In ASEAN, Laos, Cambodia, Brunei, Singapore, Thailand have already banned e-cigarettes.
Electronic cigarettes consist of two main components, which are nicotine-containing solution (for liquid e-cigarettes) or e-cigarette cartridges (for heated tobacco e-cigarettes), and the part of the device used for burning and creating smoke.
In terms of tax policy formulation, the Ministry of Finance proposes to specify the tax rate for electronic devices used for electronic cigarettes and similar personal vaporizers with HS code 8543.40.00 similar to the tax rate of electronic cigarette products specified in group 24.04 as provided in Decree No. 26/2023/ND-CP which is 50%.
Based on the synthesis of opinions, the Ministry of Finance stated that the majority of ministries, departments, and provincial People’s Committees agreed with the above proposal of the Ministry of Finance. The Ministry of Finance also stated that the Ministry of Public Security and the Ministry of Health have the same viewpoint of strict management of this commodity and propose not to specify the tax rate for electronic cigarette products and related products, as they have not yet had an import policy, legal basis, and have not yet determined the concept of the products.
The Ministry of Planning and Investment proposes to supplement the basis, legal basis when proposing to specify the import tax rate for electronic devices used for electronic cigarettes and similar personal vaporizers with HS code 8543.40.00 to regulate the use of harmful products to health.
As for the Ministry of Industry and Trade, it proposes to review to ensure that the tax rate for electronic devices used for electronic cigarettes and similar personal vaporizers withHS code 8543.40.00 is consistent with Vietnam’s commitments in the WTO.
The Ministry of Finance believes that the above tax rate regulations are necessary and appropriate. In terms of whether goods are allowed to be exported, imported, and circulated in the market, it must be implemented according to specialized management laws. “Goods that already have HS codes and names in Vietnam’s list of exported and imported goods must be specified regarding the tax rate to be applied in the case of authorized circulation” – stated the Ministry of Finance.
