HCM City proposes luxury tax on mobile phones and cosmetics

Authorities in HCM City have proposed a special consumption tax on goods including mobile phones and cosmetics.

Authorities in HCM City have proposed a special consumption tax on goods including mobile phones and cosmetics.

   

HCM City proposes luxury tax on mobile phones and cosmetics

HCM City People's Committee have submitted the plan to expand tax revenues and prevent tax losses to the Ministry of Finance. The city authorities suggested imposing a special consumption tax to more products and services including mobile phones, perfumes, cosmetics, spa and gaming services.

According to the authorities, perfume and cosmetics are luxury goods so they will be able to collect taxes from people with high incomes. The other suggested products and services are not daily necessities.

Regarding mobile phones, the HCM City People's Committee said even though mobile phones were used daily, a special consumption tax was still needed so that they could collect tax from people with high incomes that can afford to change their phones to the latest models.

The HCM City authorities also proposed to the Ministry of Finance to impose an environmental tax on batteries and pesticides since they cause severe consequences and need to be managed closely.

"The government should monitor to impose environment tax on products and services that have production and consumption processes harmful to the environment," the committee said.