Research On The Reform Of The Tobacco Excise Tax

China has the first place in the area of tobacco planting、producing、andconsumption in the world. It can be said to be a super country in tobacco productionand consumption. Along with the increase in tobacco consumption，more and moreexternal non-economic problems appeared. In order to control the problems smokingbrings，China joined FCTC in2003and has adopted a series of non-price means fortobacco control. In May2009，in order to control tobacco consumption，the ministryof finance and state administration of taxation announced to raise tobaccoconsumption tax rates. But the above control effect is not obvious.The main objective of this study was making the tobacco consumption taxreformation better to be used in the tobacco control movement. It was based oncommodity price formation mechanism and price elasticity of demand. According tolearning lessons from tobacco consumption tax reformation in Europe、 NorthAmerica and Asia，analyzing the relationship between tobacco consumption tax andtobacco consumption quantity、 tobacco tax revenue， combined with China’sconditions，draw the conclusion that China tobacco consumption tax should be how toreform. In addition，through the analysis of the current problems of the enterprises oftobacco industry，the study pointed out that the government should how to improvethe existing tobacco monopoly system.In order to create a healthy and harmonious living environment，the governmentis in urgent need of further reform in tobacco consumption tax. Firstly，increase twokinds of cigarette’s AD valorem duty to51%and61%，Specific duties of2yuan/package. Secondly，improve the relevant tax reforms. Thirdly，the governmentshould change the attitude，focus on protection of the citizen’s health instead of fiscalrevenue. It should change the current situation of the enterprises of tobacco industryto ensure that tobacco consumption tax can be linked with price.