The State Council of China has doubled tax on cigarettes from 5 percent to 11 percent. An additional tax of 0.1 Yuan will also be levied on each pack of 20 cigarettes. These new measures came into effect on 10 May.
The last tobacco tax rise, in May 2009, did not affect consumers as the China Tobacco Corporation absorbed it as profit loss.
Increasing tax on tobacco products is the most effective measure for reducing tobacco use. When used strategically, increased tax revenues can reduce consumption further by creating sustainable funds for tobacco control and health promotion.