consumption - Tobacco Reporter https://tobaccoreporter.com Fri, 18 Jul 2025 22:01:30 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.2 Vietnam to Hike Tobacco Taxes Under New Law https://tobaccoreporter.com/2025/07/18/vietnam-to-hike-tobacco-taxes-under-new-law/?utm_source=rss&utm_medium=rss&utm_campaign=vietnam-to-hike-tobacco-taxes-under-new-law Fri, 18 Jul 2025 22:01:06 +0000 https://tobaccoreporter.com/?p=164737 The law introduces a tax roadmap for tobacco products from 2027 to 2031, adding absolute tax amounts on top of existing percentage-based taxes.

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]]> Vietnam’s National Assembly passed a new law significantly raising the Special Consumption Tax on tobacco, alcohol, and beer starting January 1, 2026. The law introduces a tax roadmap for tobacco products from 2027 to 2031, adding absolute tax amounts on top of existing percentage-based taxes for the first time.

Under the new plan:

  • Cigarettes: Tax increases by VND 2,000 ($0.08) per pack annually, reaching VND 10,000 ($0.40) per pack by 2031.
  • Cigars: Starting at VND 20,000 ($0.80) per cigar in 2027, rising to VND 100,000 ($4) per cigar in 2031.
  • Other tobacco forms (e.g., pipe or shredded tobacco): Set at VND 20,000/100g or 100ml in 2027, increasing to VND 100,000 by 2031.

This is the first time Vietnam will implement a structured absolute tobacco tax, following the lead of other countries around the globe. Prior to this, only ad valorem taxes applied.

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