The Impact Of Tobacco Excise Tax Reform On Tobacco Control In China

China is the world's largest producer and consumer of tobacco.2021 WHO mentioned in the Global Tobacco Epidemic Report.China's smoking rate among people over 15 years old is nearly one-third.The number of smokers in the country exceeds 300 million.Tobacco is a serious health risk for smokers.WHO's "MPOWER" approach to action shows that taxation is the most powerful tool for tobacco control.But our current tax-based tobacco control tools are less effective.What exactly is the cause,and how can our government optimize it?First,this paper describes the economics involved in the introduction of tobacco taxes.Unreasonable preference,negative externality,information incompleteness theory,price elasticity of demand theory.Analyze the feasibility of controlling tobacco with tax by combining the principle of price and tax linkage.Introducing a tobacco excise tax is the most effective means of controlling tobacco consumption.Second,this paper analyzes the characteristics of China's tobacco consumption in terms of taxation system.Rapid growth in sales of all types of tobacco products.Tobacco consumption structure changes,consumption center gradually moved forward.The overall effectiveness of tobacco control nationwide is average.Our tobacco control policy is not sound is also one of the main reasons.By analyzing the principle of tobacco control through taxation and the mechanism of tobacco excise taxation.This paper considers the following four reasons for the sluggish effect of tobacco control by taxation:(1)Tobacco tax burden is low;(2)Failure of the price tax linkage mechanism;(3)Deficiencies in the tobacco monopoly system;(4)Tobacco affordability is increasing.The empirical part of the paper uses a fixed effects model.Analyzed the impact of the effective tax burden of cigarette excise tax on cigarette sales.Quantifying the effect of policy implementation of multiple cigarette excise tax reforms.It also innovatively introduces the cigarette tax burden in different provinces to analyze the impact of cigarette tax burden on their sales.The empirical results show that increasing the effective tax burden significantly reduces tobacco sales.Therefore,raising taxes should be an important tool for tobacco control.The paper then summarizes the more mature tobacco control experiences of other developed countries.Combining the status of tobacco excise tax in China and the development trend of future reform,we propose some measures for tobacco control in China.Finally,the paper concludes based on the theoretical and empirical analyses.Suggested tax policies to effectively regulate tobacco consumption from the perspective of improving the consumption tax system.Increase the proportion of ad valorem tobacco excise tax.Implementing tobacco excise tax indexation.Simplification of the tax system.Consumption tax is implemented out-of-price tax,etc.