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Vietnam may cut handset tax

26 Aug 2004

The Vietnamese government may have to cut the tax it levies on imported mobile phones in order to cut down on the number of smuggled handsets. According to local press reports, the Ministry of Trade has proposed that the Ministry of Finance halve the current tax rate of 10%. Estimates that around 70% of mobile handsets in use in Vietnam have been illegally smuggled into the country to avoid the taxes. The country was home to around three million mobile subscribers at the end of June and the ITU says it has one of the world’s fastest growing cellular markets.


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