No special consumption tax on online games
In this article (5)
The government has rejected a proposal by the Ministry of Finance to slap a special consumption tax on online games and sought more scientific data to tax sugary drinks.
But in a recent decision, it instructed its agencies to use other legal means to limit playing time.
Earlier this year the ministry had suggested imposing the tax on online games as a means to dissuade people from playing them, saying they have negative impacts on players’ health and society.
But industry insiders and experts criticized the proposal, saying gaming has the potential to become a new industry.
The tax would decrease the competitiveness of Vietnamese game producers and cause them to move overseas, they said.
The ministry had also proposed taxing sugary drinks since they cause obesity, but the government has asked for more scientific data to back that claim.
It also tasked the ministry with studying the possibility of taxing e-cigarettes to ensure Vietnam’s international commitments would not be breached.
Questions & Answers
Q.What reason did the government give for rejecting the Ministry of Finance's proposal to tax online games?
What reason did the government give for rejecting the Ministry of Finance's proposal to tax online games?
The government rejected the proposal to impose a special consumption tax on online games. Instead, it instructed its agencies to use other legal means to limit playing time, without specifying a reason for rejecting the tax itself.
Q.Why did the Ministry of Finance initially propose a tax on online games?
Why did the Ministry of Finance initially propose a tax on online games?
The Ministry of Finance suggested the tax as a way to discourage people from playing online games. They believed that these games have negative impacts on both players' health and society as a whole.
Q.What concerns did industry insiders and experts raise about the proposed online game tax?
What concerns did industry insiders and experts raise about the proposed online game tax?
Industry insiders and experts criticised the proposal, arguing that gaming has potential as a new industry. They warned the tax would reduce the competitiveness of Vietnamese producers, possibly causing them to relocate overseas.
Q.What is the government's current stance on taxing sugary drinks?
What is the government's current stance on taxing sugary drinks?
The government has not approved a tax on sugary drinks at this stage. It has requested more scientific data to substantiate the claim that these drinks cause obesity before making a decision.
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