Tobacco Tax Reform Program Design And Improvement Measures

In 2013,WHO shows that the annual death toll caused by smoking each year is nearly 6 million.The number in C hina is more than 1 million.As the main supplier and consumer of tobacco,we have found many problems of External Diseconomy,yet we haven't took efficient measures to control smoking by far.Since China joined in FCTC in 2003,the non-price control means taken by government haven't reduced tobacco consumption obviously,as well as the reform of consumption tax in May 2009.The tax rate reformed in May 10 t h this year failed to increase retailing price of cigarettes and control tobacco consumption,because State Tobacco Monopoly Bureau took the measure of replacement of profit delivery by taxes.Through the data research,this study analyses the situation of tax burde n,tax structure,price and consumption about tobacco tax.Meanwhile,through the simulation of consumption tax change,the study finds the impact on tobacco prices,consumption and fiscal revenue.In addition,through the analysis of the current problems of the enterprises of tobacco industry,the study pointed out that the government should how to improve the existing tobacco monopoly system.In order to create a healthy and harmonious living environment,the government is in urgent need of further reform in tobacco consumption tax.On the one hand,tobacco tax burden in China is lower than that in developed countries.The next step of reform is to increase the burden to 50%,and further increase to 60%.On the other hand,we need optimize the design of taxation,including the reform of Tobacco Leaf Tax,consumption tax and Corporate Income Tax.It should change the current situation of the enterprises of tobacco industry to ensure that the tobacco consumption can be controlled efficiently.