Tobacco fund, money laundering debated

Lawmakers yesterday agreed that the establishment of a tobacco prevention fund would provide a basic foundation for implementing the Law on Tobacco Prevention and Control. In debate yesterday at the third session of the 13th National Assembly, many deputies said that the fund would demonstrate political commitment as well as provide a legal foundation for mobilising financial resources for tobacco prevention efforts. Chairwoman of the National Assembly Committee for Social Affairs Truong Thi Mai said that the draft law had been revised towards the goal of reducing tobacco production nationwide. More information - www.freetobacco.info

Many deputies suggested that the State budget should provide financial resources annually for the fund but that the amounts allocated should not exceed 2 per cent of the total funds collected from special use tax on tobacco. However, others suggested that the fund be raised from tobacco producers and importers as a percentage of cigarette prices before VAT and special use taxes. "Financial resources for the tobacco prevention fund should be collected from the pockets of tobacco producers, traders and user rather than from the State budget," said deputy Pham Khanh Phong Lan from HCM City. "We cannot force people who do not use tobacco to pay for this." Lan said that the law should provide for stricter penalties for violations and urged that greater attention be paid to cigarette smuggling and illegal imports.

Deputy Vuong Dinh Hue from Binh Dinh Province said: "Money for the fund should come from an obligatory contribution from tobacco production and import units. The contribution need not affect the State budget and would therefore not violate current laws and regulations on spending." Deputy Tran Van Huynh from Vinh Long Province added that smoking should be prohibited at pagodas and other worship areas and the law should define clearly who is in charge of handling violations at public sites. "We expect a draft law to be promulgated soon in order to reduce the burden on the public health," said Huynh. Discussing the draft Law on Prevention of Money Laundering, many deputies said that the law should regulate in detail all behaviours related to money laundering. Do Van Duong from HCM City and Tran Dinh Nha from Thua Thien-Hue Province said that money laundering was a global battle because it took place not only in monetary transfers but also in other channels such as real estate and business investments.

"Many contents of the draft law should be re-designed in conformity with the current situation," said Duong. Many deputies agreed with Deputy Cao Sy Kiem from Thai Binh Province that the Ministry of Public Security and the State Bank of Viet Nam should take primary responsibility for preventing money laundering and that the law should regulate in detail duties and collaborative mechanisms for both agencies.