Saigoneer

BackStories » Saigon » Saigon Mulls 'Luxury Tax' on Mobile Phones, Tax Cuts for Middle Class

Saigon Mulls 'Luxury Tax' on Mobile Phones, Tax Cuts for Middle Class

Along with cameras, cosmetics, perfumes, spa services and gaming, Saigon aims to up revenue by increasing the taxes collected on cell phones.

The People's Committee recently sent the Ministry of Finance suggestions for a draft proposal that would bring in more funds from high-income earners. While admitting that mobile phones are not exactly luxury items, the tax would most impact those people who can afford to frequently upgrade to new models. 

Depending on various factors including the total value and amount sold of an item, luxury taxes in Vietnam vary from 10 to 70%. Officials have not announced what the figures might be for the new items to which they are considering adding the tax.

The suggestions come amidst other proposed changes to Saigon's tax system. Most countries have four to eight groups of items not subject to a value-added tax (VAT), which is the standard tax placed on most goods and services. Vietnam has 25 groups that are exempt, which is too many, according to the People's Committee. The normal VAT rate in Vietnam is 5–10%.

With regards to income tax, the city wants to cut taxes for the middle class. Saigon officials also want an environmental tax placed on batteries and pesticides. "The government should monitor to impose environment tax on products and services that have production and consumption processes harmful to the environment," the Committee explained.

[Photo/CC BY]


Related Articles:

Saigon Tax Department Orders Facebook Cosmetic Vendor to Pay $400,000 in Back Taxes

Vietnam's Increased Green Tax on Fuels Next Year Will Bring in $677m Yearly


Related Articles

in Saigon

$100,000 Diamond Allegedly Vanishes From Woman’s Finger In HCMC Hotel

A Hanoi woman claims that she was drugged at a HCMC hotel last weekend and awoke to find that a $100,000 diamond had been pried from her ring.

in Saigon

100,000 Workers at Saigon Industrial Zones to Get Free WiFi by 2019

Workers at Saigon’s industrial zones can look forward to free WiFi access in the near future thanks to a new program.

in Saigon

100-Year-Old Trees In Front Of Opera House Cut Down To Make Way For Metro

Flower Street and the statues in front of Bến Thành Market aren’t the only sacrifices being made to accommodate the construction of Saigon’s first metro line.

in Saigon

122-Year-Old Saigon Woman Confirmed As World’s Oldest

The World Records Association (WRA) has completed the verification process and officially confirmed Saigon’s 122-year-old Nguyen Thi Tru, as the world’s oldest woman.

in Saigon

160 Wood Benches Being Added To Nguyen Hue Street

The trees that were cut down last July during construction of the metro station in front of the Saigon Opera House are making a comeback in the form of benches.

in Saigon

2 Men Arrested In HCMC For Trying To Ship Gun and Grenade In Guitar Case

Two local men were arrested last Tuesday after attempting to ship a rifle, grenade and 5 bullets to Hanoi in a guitar case. Surprisingly, neither of the men were Antonio Banderas.