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China tobacco sector reports higher taxes, profits

0 CommentsPrint E-mail Xinhua, January 15, 2010
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Combined profits and taxes in China's tobacco industry in 2009 topped 513.11 billion yuan (US$75 billion), a rise of 55.9 billion yuan from a year ago, Zhang Xiulian, spokesman with the State Tobacco Monopoly Administration, said Thursday.

Industrial and commercial taxes paid by the industry last year reached 416.3 billion yuan, up 26.2 percent year on year, said Zhang at the annual news conference of the tobacco industry.

The rise of taxes and profits were made possible by a major tobacco tax hike, despite curb of production.

In June, the government raised the tobacco consumption tax by 36 percent to 56 percent, depending on different tobacco classes.

To further curb smoking in line with the law and international treaties China has ratified, the Ministry of Commerce and the State Administration of Taxation (SAT) issued a circular on August. 10, 2009, declaring an end to tax breaks on promotional spending for tobacco firms.

China has also promised to ban all forms of tobacco promotions since January, 2011.

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