China to increase tobacco products consumption tax up to 56%

BEIJING, June 20 Xinhua reporter from the National Tax Administration website learned that, with the approval of the State Council, the Ministry of Finance, the State administration of taxation recently on the tobacco products consumption tax policy has made a major adjustment, tobacco products production link consumption tax policy has changed significantly, adjusted the tax rate, increased the consumption tax rates,　　The cigarette wholesale chain also adds an extra price tax of 5%. The new policy will be implemented from May 1. After the policy adjustment, the excise duty rate of a class of cigarettes was adjusted from 45% to 56%, and the category B cigarettes were adjusted from 30% to 36% and cigars from 25% to 36%.　　At the same time, the original Category B cigarette classification standards have also been adjusted, the original 50 yuan demarcation line up to 70 yuan, that is, each standard article (200) transfer price at 70 yuan (excluding VAT) above (including 70 yuan) of cigarettes for a class A cigarette, lower than this price for the type B cigarettes. The most striking aspect of this policy adjustment is the imposition of a premium tax on cigarette wholesale, the tax rate is 5%. The Ministry of Finance, the State administration of taxation in the document clearly, in the People's Republic of China engaged in cigarette wholesale business units and individuals, wholesale sales of all brand specifications of cigarettes, according to wholesale cigarette sales (Excluding VAT)　　Multiplied by 5% of the tax rate to pay the wholesale link excise tax.　　On the reasons for this policy adjustment, the Ministry of Finance, the State administration of taxation documents in the statement is "in order to appropriately increase revenue, improve tobacco products consumption tax." "Raising tax rates on tobacco products will not only increase government revenue but also save millions of lives," he said. "Li Ling, professor of China Economic Research Center at Peking University, said in an interview. Raising tax rates is one of the most effective ways to control tobacco in the world, she said. Because the price of tobacco is the most important factor affecting the short-term consumption of tobacco products. The price of cigarettes was raised after the tax rate was increased.　　Young people, minors and low-income people are twice times as likely to quit or smoke less than other smokers, ~3. According to Li Ling, at present, China's annual smoking caused by the direct loss of 140 billion yuan ~1600 billion, the indirect loss of 80 billion yuan ~1200 billion. In order to control the excessive consumption of tobacco products, the majority of countries in the world have a heavy tax on their courses. 2003 China formally joined the Global Framework Convention on Tobacco Control, who constantly urged China to increase the use of tax measures to control the intensity of smoking. But the level of cigarette tax burden in China is obviously lower than that of other countries and regions, and there is room for improvement. The country has significantly increased consumption tax burden on tobacco products, just when.　　"she said. It is understood that in order to ensure that the tobacco product consumption tax adjustment in place, the State administration of taxation recently approved the production link taxpayers each grade standard cigarette consumption tax minimum tax price, and issued two consecutive documents, clear the new deal under the specific methods and requirements of management. The State administration of taxation requests local tax authorities to send factory groups to tobacco production enterprises and cigarette wholesale units, to understand the production and operation of enterprises, to conduct tax counseling, to verify the basis of excise tax and to monitor the taxpayerstransactions, strengthen the management of excise tax collection to ensure that the consumption tax revenue timely warehousing.