Recent tobacco tax rate adjustment and its potential impact on tobacco control in China.

ABSTRACT:

Objectives

To compare the new tobacco tax structure effective from May 2009 with the tax structure before May 2009 and to analyse its potential impact.

Methods

Published government statistics and estimated price elasticities of the demand for cigarettes are used to estimate the impact of the new tax rate adjustment on cigarette consumption and population health.

Results

The new adjustment increased the tax rate by 11.7% points at the producer price level. Converting this 11.7% point increase to the retail price level would mean an increase of 3.4% points in the retail price tax rate. Thus, China's new cigarette tax rate at the retail level would be 43.4% instead of the previous 40%.

Conclusions

The primary motivation for the recent Chinese government tobacco ta

SUBMITTER: Hu TW 

PROVIDER: S-EPMC4041681 | biostudies-literature | 2010 Feb

REPOSITORIES: biostudies-literature