Tobacco tax may rise next year experts say it will not directly affect prices

Xinhua News (Reporter He Ying) Recently media reports that China is drawing up a new tobacco tax adjustment program, next year is expected to be introduced. Yesterday, the reporter interviewed tax experts, it is believed that even if the tobacco tax increase, I believe that only low-income smokers will have an impact.　　Industry insiders said that the current tobacco prices are priced by the state, tax adjustment will not directly affect prices, also did not receive the "Tax price linkage" news. Since last June, the country has increased excise taxes on tobacco products, but it does not have a clear effect on tobacco control. According to the Legal Evening News report, the Chinese Center for Disease Control and Prevention, Deputy Director of the Office of Jiang to the last adjustment of the follow-up study. The results showed that there was no obvious change of cigarette retail level in China from September 2007 to July 2010.　　The May 2009 cigarette tax hike did not lead to a rise in retail prices, nor did it affect smokers ' smoking behavior. This reporter interviewed smokers also found that last May after the tax, local cigarettes are cheaper, "102 yuan a piece of the five-leaf God is cheaper than two yuan."　　"said Mr. Zhou, who had been smoking ten years. Yang Zhiyong, deputy director of the Finance and Taxation Research Institute of the Chinese Academy of Social Sciences, told our correspondent that last year's tax increase was aimed at increasing revenue, while tobacco companies digested the cost of tax increases and reduced profit margins, but the retail price of tobacco did not change.　　He bluntly, even if the tobacco increase after the tax increases, will only reduce the effect of low price tobacco consumption, under the existing conditions, high-grade cigarettes "more expensive the more people buy." According to the legal Evening news, Kin, a researcher at the Tax Research Institute of the State Administration of taxation, stressed that the value of reform is to establish a mechanism of tax price linkage, so that the increase in tax rates is reflected in the price. The State administration of taxation, Huxianming, director of the Department of Consumption, said that in order to further increase the intensity of tobacco control, the tax rate will certainly continue to improve. According to the plan, the plan is now being drawn up and expected next year. The State administration of taxation intends to push up the price of cigarettes, and to implement "tax price linkage", in the retail link increase, reduce the profit margins of tobacco enterprises.