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Cigarette tax increased to cut smoking

By Wang Xu, Tan Yingzi and Wang Zhuoqiong | China Daily | Updated: 2009-06-22 07:47

The government has raised consumption tax on cigarettes by between 6 and 11 percent to curb smoking and add revenue to State coffers.

The tax hike took effect on May 1 but was made public over the weekend along with a levy of 5 percent imposed on cigarette wholesalers, according to a statement by the State Administration of Taxation.

The tax has not yet been passed on to smokers and it is unclear how much of the increase tobacco companies, wholesalers and retailers will absorb.

Cigarette tax increased to cut smoking

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