Vietnam last year incurred tax losses amounting to VND4.32 trillion from the smuggling in of some 930 million packs of cigarettes.

According to Pham Kien Nghiep, general secretary of the Vietnam Tobacco Association, the lost tax revenue was just VND3.2 trillion in 2008, which means the smuggling of cigarettes into Vietnam has been on the rise.

Nghiep said that in addition to the loss of VND4.32 trillion, Vietnam’s tobacco industry was also affected with production volume declining around 18,000 tons and 180,000 working days lost.

Under Circular 36, a person may face a jail term ranging from three months to 15 years for smuggling cigarettes, but the smuggling has not declined due to huge profits.

In related news, the Government last week issued a decision approving the national target program on preventing harms of smoking until 2020. The program is intended to reduce smoking among those aged from 15 to 24 from the current level of 26% to 18% in 2020.

The Saigon Times Daily