Vietnam has a purely ad valorem tax system, which is based on pre-tax factory price.6 In 2006, the excise rate on cigarettes was set at a uniform rate of 55%, which was increased to 65% in 2008, to 70% in 2016, and then to 75% in 2019.7 Despite these increases in the ad valorem rate, the total tax (including VAT (value added tax)) in Vietnam only accounts for 36% of retail price, much lower than the WHO recommended level of 75% of retail price and the global average level of 56%, and lower than most of the countries in the Association of Southeast Asian Nations (ASEAN).8 For example, in the Philippines, excise rates surged by 340% to 820% for low-priced brands in 2013 and increased annually until 2017 with a 4% annual hike thereafter to keep pace with inflation.9 Currently, the average tobacco tax burden is 71.32% of cigarette retail prices in the Philippines
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In comparison, the blood vessels of someone who regularly smokes is like a skinny drinking straw that struggles to transport rich, oxygenated blood throughout the body
