Study On The Effect Of Tobacco Consumption Tax On China And The Countermeasures

In our country, on the one hand, the contribution of the tobacco industry and its related industry practitioners are occupies a considerable proportion of all; On the other hand, as smoke and smoking power in our country, smoking caused by the external economic problems concern. The world health organization(WHO) statistics shown that the global annual death toll caused by smoking nearly 6 million people, which has super millions of people died in our country each year from smoking. Our country in 2003 joined the world health organization framework convention on tobacco control(decision FCTC),the government took some non-tax means to control, at the same time they also took tax means to control. In May 2015, the government raised cigarette wholesale link AD valorem tax again, in order to strengthen the tax regulation of the tobacco industry. But how the government regulation effect of tobacco consumption still need further study. In order to analyze the combined effect of tobacco consumption tax reform in our country, the article from the following five aspects were studied.First of all, we have to impose consumption tax on tobacco the theoretical analysis.Firstly, to definite the consumption tax and consumption tax on tobacco, and from the aspects of demand elasticity theory and the theory of tax burden on to improve the tobacco consumption tax rate can control tobacco consumption or not to definite, indicates the government’s theoretical basis "to ensure the smoke". Secondly, the current situation of the tobacco industry tax revenue of our country is analyzed, from the current tobacco excise tax system, tax belonging, duty mode three aspects elaborates on the status quo, and points out that there are still some problems after tobacco consumption tax reform, such as tobacco consumption tax is still low, tax link is too single, duty way design is unreasonable,the tax ownership lead to tobacco control effect is not satisfied, need the government further attention and solve. Third, the empirical analysis of the effects of tobacco consumption is divided into the questionnaire and simulation analysis in two ways. On the one hand, in the form of questionnaire, understand the general public consumption of tobacco and degree of understanding of tobacco consumption and improve the advice and analysis of the current tobacco consumption tax is set on the deficiencies and problems, so that a more perfect future reforms in tobacco consumption tax policy. On the other hand,through the simulation analysis way to improve the effects of tobacco consumption rates were analyzed. One is to assess the effects of cigarette consumption tax on tobacco consumption, concluded that the higher the price of cigarettes, the higher tax rate, the lesscigarette sales, on behalf of the more to control tobacco consumption, reducing smoking lead to disease and death. The second is to assess the effect of cigarette consumption tax on tobacco industry, concluded that the higher the tobacco consumption tax, the greater the negative effect on the cigarette industry, tobacco industry declining workforce. Three is to assess the effect of cigarette consumption tax to finance income, improve the cigarette consumption tax will bring the increase of fiscal revenue. Fourth, the tobacco consumption tax policy and the effect of the tobacco control at home and abroad were reviewed and international comparison, the Americas, Europe and Asia representative tobacco consumption tax introduced in some countries, in order to provide the reference to fiscal and taxation policies in China. Fifth, on the basis of empirical analysis, combined with international experience and China’s national conditions put forward some proposals on tobacco consumption tax reform, including promoting tobacco taxes rationalization,change the way the tobacco consumption tax levied links and duty, gradually promoting the marketization process of tobacco products, the implementation of tax on real significance linkage. At the same time, the government should perfect tax related supporting measures as soon as possible, increase the taxes on tobacco control, medical investment and employment, publish relevant policy to solve because of the tobacco tax reform laid-off worker again obtain employment problem as soon as possible, and set up a reasonable tax return system, perfect the tobacco laws and regulations and guarantee control effect to achieve better comprehensive effect.