Special mobile phone tax stirs controversy

A proposal to impose a special tax on mobile phones has proved controversial with relevant ministries unable to reach an agreement on the issue.

Officials from the ministries of industry and trade, information and communications, and finance, have met to handle the issue, however, they are discussing whether handsets should be classed as “production serving tools” or “luxury consumption commodities.”

For example, 3G handsets should be considered as hi-tech products, while basic mobile phones should be seen as necessary everyday products. With this reasoning, only expensive mobile phones should be listed as luxury goods, such as the Vertu series.

Some officials warned that imposing a high tax on mobile phones would not reduce the trade deficit but result in commercial fraud.

Previously, Deputy Minister of Industry and Trade Nguyen Thanh Bien said that authorities could not ban local people from using expensive handsets such as the iPhone but Viet Nam needs to curb the massive import of these products as it affects the country’s commerce and balance of payment.

Bien said that the import tax on mobile phones is currently zero in accordance with commitments to the ASEAN Free Trade Area. This commitment cannot be changed, so he recommended that Viet Nam consider a luxury tax on expensive mobile phones priced from VND3-5 million upwards.

Brand names speak to mobile phone buyers: Survey

Brand will be the most important mobile phone purchase consideration for Vietnamese consumers in the future, according to a survey made by TNS market research company.

Under the Global Telecoms Insights (GTI) survey, 41 per cent of Viet Nam’s mobile users said that brand is the most important factor when choosing their next mobile handset, compared to 19 per cent who pick their phone based on the model of handset and 12 per cent and 11 per cent who make their choice based on the content and applications, and the network operator respectively.

According to the survey, brand also remains the most important factor when choosing mobile phones worldwide, however, the worldwide rate is only 29 per cent, followed by content and application with 14 per cent. Model accounts for 13 per cent worldwide.

GTI 2010 is a global study designed to provide an overview of the evolution of mobility and technology in consumer lives. It is used by clients to help with brand, channel and product development strategies through understanding the needs, pain points and changing preferences of 27,000 consumers in 35 markets, including Viet Nam.

VIETNAMNEWS

Tags: Vietnam mobile phone tax, Vietnam Telecom