Jump to full article: China Daily (cn), 2009-06-22
Author: Wang Xu, Tan Yingzi and Wang Zhuoqiong (China Daily
Intro: The government has raised consumption tax on cigarettes by between 6 and 11 percent to curb smoking and add revenue to State coffers.
The tax hike took effect on May 1 but was made public over the weekend along with a levy of 5 percent imposed on cigarette wholesalers, according to a statement by the State Administration of Taxation.
The tax has not yet been passed on to smokers and it is unclear how much of the increase tobacco companies, wholesalers and retailers will absorb.
"The move will not only increase government revenue but also save the lives of millions," Li Ling,a professor at the National School of Development at Peking University, told Xinhua News Agency.
The Chinese Association of Tobacco Control said in a statement yesterday: "Efforts to increase the tobacco tax and lift tobacco prices have proven the most effective in reducing smoking among smokers of all income levels. It will prevent young people from smoking and encourage more smokers to quit the harmful habit."
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