Raise tax on tobacco
China Daily | Updated: 2008-12-17 07:56
What about another 1 yuan consumer tax on a pack of cigarette?
Experts say this tax increase would reduce China's smokers by more than 13 million. As a result, more than 3 million lives will be saved from cigarette-inflicted diseases. In addition, government revenue from the tax will rise by 64.9 million yuan.
A report released on Monday by the China Smoking Control Association says that the retail tax rate on cigarettes in China is about 40 percent, much lower than the middle-level international rate of 65 to 70 percent. A 1 yuan increase in consumer tax will raise the rate to 51 percent, still lower than that in many developed countries.
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