Policy Study On Prc Excise

After nearly 100 years development, Chinese tobacco industry has become a pillar industry to Chinese fiscal revenue. Chinese government has adopting prohibitive tax on tobacco industry for a long time. Tax on Cigarette industry is even over 40%, among which excise (cigarette consumption tax) tops all. The adjustment of tax policy on cigarette plays an important regulation role on Chinese tobacco industry.The object of this paper is the consumption tax of the cigarette of Chinese tobacco industry. Combining the characteristic of domestic tobacco industry, this paper analyzes and studies consumption tax on cigarette in China. Firstly, this paper introduces the history and evolution of the previous adjustment of Chinese cigarette consumption tax policy, and also analyzes and evaluates the shortcomings of the current tax policy on cigarette. By comparison with foreign polices, and combined the actual condition of Chinese tobacco industry and the characteristics of the financial system in PRC, this paper proposes ways and methods on improving cigarette consumption policy. The author wishes this paper will be of any beneficial to the production restructuring of China's tobacco industry, increasing state revenue, and enhancing the competiveness of the enterprises.