Increase tobacco tax: Double benefit for health and household!

Increase tobacco tax: Double benefit for health and household!

The discussion about the increase in tobacco tax is absorbed in Vietnam and is viewed as an important means to increase the household revenue and to improve public health. It is estimated that around 100,000 people in Vietnam die early on the consequences of tobacco consumption, with enormous costs of over 100,000 billion and for the medical system. These alarming numbers illustrate that there is a need for action here. According to vietnam.vn , an immediate and significant increase in special consumption tax. at the same time reduce health expenditure.

The proposal to raise the tobacco tax to 75% relative and 15,000 and 15 per pack until 2031 comes from Dr. Nguyen Huy Quang and finds support from health experts like Professor Nguyen Anh Tri. He emphasizes that the tax increase not only influence the consumer behavior of the smokers, but also generated urgently needed income. Examples from other countries such as the Philippines and Thailand show that such measures can achieve high income that could be used, for example, to finance medical treatments.

Financial dimension of tobacco taxation

Financing the health system is a central topic in the current debate. In 2021, the state of Germany took around 14.67 billion euros in tobacco taxes, which, however, cannot cover the follow -up costs of smoking 97.24 billion euros. This difference of 83 billion euros shows that smoking causes high direct and indirect costs that ultimately burden the social systems. As reported SWR3 , about 31% of these costs are direct expenses for health care and care, while 69% of indirect costs include labor market losses due to early death.

The debate is viewed differently by experts. Economists like Berthold Wigger argue that smokers could relieve the pension funds due to their frequently early death, which causes a complex cost-benefit calculation. The various approaches to calculate the costs- be it the gross or net cost approach- illustrate the complexity of this topic. FasterCapital emphasizes that tobacco taxation is also an effective means of reducing the smoking quota, especially in young people.

Health and prevention in focus

The health consequences of tobacco consumption are undisputed. Smoking is a main cause of avoidable diseases such as lung cancer and cardiovascular diseases. The requirement to increase tobacco tax not only aims to fill the household health insurance companies, but also to make the population healthier. The Secretary General to Lam emphasizes the prevention of chronic diseases and recognizes tobacco as the greatest risk factor.

The challenges are great. Critics of the tax increase indicate that low -income persons are disproportionately affected and that high taxes could promote illegal trade. Studies show that, for example, high tobacco taxes in Australia have led to a reduction in the smoking quota, but can also boost trade with smuggling goods.

In order to counter the negative aspects of tobacco taxation, targeted measures would have to be taken against illegal trade and social programs to support the most affected population groups. This is the only way to ensure that increased revenue from tobacco tax actually bring the desired benefit for society.