China to Raise Taxes on Cigarette Imports (fwd)

[Robert Weissman <rob@essential.org>]

                             Tuesday  August 18  1998

                Taxation 
                    Smokers of foreign
                    cigarettes face cost
                                rise 

                REUTERS in Shanghai 
                The mainland has raised the consumption tax on
                imported cigarettes to 50 per cent from 40 per cent
                as of July 1.

                The State Council also adjusted the tax on
                domestic cigarettes, creating three categories based
                on quality with rates of 50 per cent, 40 per cent
                and 25 per cent, the China Securities newspaper
                said yesterday. Previously, all domestic cigarettes
                were taxed at 40 per cent. There were no details
                on how the different grades would be applied.

                The government had also raised the purchase price
                for tobacco nationwide to 350 yuan (about
                HK$325) per 50 kilograms as of next year from
                the present 242 yuan.

                It would also lower taxes for tobacco growers to
                20 per cent from 31 per cent as of the start of next
                year.

                The newspaper said the measures were aimed at
                stimulating sales, although it did not explain the
                higher tax on imports.

                The mainland has more than 300 million smokers
                out of its population of 1.2 billion.

                Chen Minzhang, former public health minister,
                warned in January that about 100 million
                mainlanders would die before the age of 70 from
                tobacco-related diseases unless they quit.

                Tobacco is one of the mainland's most profitable
                industries.

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