The Legal Bases for Taxing Mobile Phones Weak, Lawyer Said

Diep Nguyen

11:48 09/05/2019

BizLIVE -

Mobile phones are really necessary and popular, the number of subscribers in Vietnam is almost equivalent to the number of total population.

The Legal Bases for Taxing Mobile Phones Weak, Lawyer Said

Truong Thanh Duc - lawyer

Recently, as reported by Bizlive, the Ho Chi Minh City Administration recommended that it was now the time to raise tax on some kinds of products and services such as mobile phones, camera, perfumes, game services and beauty services.
Some city officials stressed that: “Perfumes and beauty services should be added to the special tax product category because they belong to the group of high ranking products, thus taxing in this way can help to regulate incomes of certain groups of high income consumers”.
The Ho Chi Minh city officials admitted that this is the essential product serving for the comunication desire of consumers but this should be put into the the special tax product because some of them are expensive and consumers frequently upgraded so it is necessary to regulate their incomes.
In a recent interview with Bizlive, lawyer Truong Thanh Duc, said that the base arguments for taxing mobile phones and perfumes are very weak and unacceptable.
In Duc’s argument, the special consumer tax should be put on the kind of products that the State does not encourage using. Mobile phones are really necessary and popular, the number of subscribers in Vietnam is almost equivalent to the number of total population, if the State wants to tax mobile phones then it is also possible for them to tax everything.
At the same time, perfumes and cosmetics are essential products with women, from the low income people to the rich one, from teachers to people working in other fields, thus it will be illogical to tax perfumes and cosmetics.
Duc also worried that this mindset of regulating market hinder country’s development prospects. In the market economy, Duc stressed that the consumption should decide the production and business development.
In the current business environment, Duc recommended that instead of taxing more products, we should reduce the number of products that are taxed like air conditioners, popular car models and massage services.

DIEP NGUYEN

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