Optimal Commodity Tax And Optimization Of China's Tobacco Excise Tax

Tobacco excise tax is an important tool for a country to regulate and control the development of its tobacco industry. Optimizing the tobacco excise tax system can be helpful not only to control tobacco consumption but also to promote the health of the citizens. It can also be conducive to maintain the interests of the tobacco industry, optimize the structure of the tobacco industry, and help to cultivate some large-scale tobacco companies and enhance international competitiveness. Thereupon, the tobacco industry and its related industries can develop better and the whole economy can be improved. At the same time, fiscal revenues will be increased and therefore can be spent in improving the public welfares.This paper generally develops as follows:theoretical analysis, practical inspection, empirical test, conclusion and application. It employs the optimal commodity tax theory and attaches great importance to investigating the industry's development from the perspective of tobacco excise tax, probing into the ways to to realize a"win-win"situation of both people's health enhancement and the industry's sustainable development by adjusting the tobacco excise tax. This paper uses the theory of optimal taxation system, optimal commodity taxation system and excise tax optimation to analyze the theoretical basis of the tobacco excise tax system design step by step. In-depth studies of tobacco excise system's history and current policy in China are carried out, investigating the tobacoo excise tax system in five respects: tax jurisdiction, taxable methods, tax methods, tax rates and the collection link. In addition, it makes use of quantitative methods to conduct an economic simulated analysis on cigarette excise tax burden. At last, it accordingly proposes a general idea and specific suggestions for the tobacco excise tax system reformation.