Higher Tobacco Taxes Imposed
Jun. 22 – China’s Ministry of Finance and the State Administration of Taxation (SAT) has announced higher taxes on tobacco products to increase state revenue.
Cigarette cartons that cost RMB70 or more will be taxed from 45 percent to 56 percent while cartons costing less than below RMB70 will be taxed from 30 percent to 36 percent reports Xinhua.
“The move aims to moderately increase financial revenue, and perfect the taxation mechanism”, the agency said in a statement.
A 5 percent advalorem tax was also introduced on tobacco products for the first time. The tax is based on the real value of the product and not on quantity.
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