Vietnam Proposes 50% Import Tax on E-Cigarettes

On March 11, 2024, Vietnam's Ministry of Finance reiterated its intention to levy a 50% import tax on e-cigarettes and related products. These products are prohibited from being imported, manufactured, or traded in Vietnam due to public health, social, and environmental concerns, particularly among children and adolescents.

The Vietnamese Ministry of Finance defends its plan to levy a 50% import tax on e-cigarettes, claiming that the decision is based on the classification of e-cigarettes and associated products on Vietnam's List of imported and exported commodities. It claims that Decree 26 created Most Favored Nation (MFN) tariff rates for e-cigarettes, with a 50% tax rate agreed upon in Vietnam.