The Ministry of Information and Communications, Ministry of Industry and Trade and Ministry of Finance have discussed several times the proposal on imposing a luxury tax on mobile phones.

VietNamNet Bridge – An official from the Ministry of Information and Communications (MoIT) told VietNamNet that officials of the MoIT, Ministry of Industry and Trade and Ministry of Finance have discussed several times the proposal on imposing a luxury tax on mobile phones.

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These ministries have not reached an agreement, because some see cell phones as hi-tech products, while others think that they are luxuries.

One official noted that 3G handsets should be considered as hi-tech products, while basic mobile phones should be seen as products serving life. With this reasoning, only expensive mobile phones should be listed as luxury goods.

Cell phones like Nokia N8800, inlayed with several diamonds, are manufactured to advertise the Nokia brand and they are not imported into Vietnam in large numbers, so they should not be called luxury products. However, the Vertu series must be categorized as luxury items.

Government agencies can only impose luxury taxes on mobile phones once they define them as tools serving production or consumer goods, the official added.

On April 6, Deputy Minister of Industry and Trade Nguyen Thanh Bien said that it is unfeasible to ban people from using expensive handhelds like the iPhone 3G, but the Government needs to prevent the mass importation of this product to maintain balance of payments.

Bien commented that the import tax on hand phones is zero, in accordance with commitments to the ASEAN Free Trade Area. This commitment can’t change, so Vietnam may consider a luxury tax on expensive mobile phones priced from 3-5 million dong upwards.

Ha Phuong