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• China Increases Cigarette Levies to Curb Smoking 

China has raised levies on cigarettes, according to the official Xinhua news agency, in a move touted by some state media as an effort to curb smoking. It's not clear how much of an impact the tax increases will have, however, in a country with more smokers -- roughly 350 million -- than the U.S. has citizens.

Beijing's tax agency divides cigarettes made by state-owned tobacco manufacturers into different classes, based on their price. The consumption tax on one class of higher-priced smokes is rising to 56% from 45% of the price cigarette factories charge distributors. The tax on a class of less-expensive cigarettes will increase to 36% from 30%, Xinhua said. A tax of 5%, which is assessed on the price of the cigarettes as they are sold by wholesalers to retailers, is also being imposed, Xinhua said. . . .

"Whether it will affect the retail price, we still need to wait and watch," said Jia Kang, director of the Institute for Fiscal Science Research, a think-tank affiliated with the Finance Ministry. He said he expects tax increases to be passed along to consumers, eventually. "If the tobacco companies don't transfer the tax to consumers, it will be meaningless" for public health, Mr. Jia said.

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