Tobacco Industry

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Tobacco Control Policies:
Political awareness of the scale of the public health problem of tobacco is rising because of the huge health and social costs of smoking. The Chinese government has joined the rest of the world in tobacco control. However, policy makers in China are facing a conflict between the economic interest and the health concerns. In 2005, China has signed the WHO Framework Convention on Tobacco Control (FCTC), which requires China to adopt tax and non-tax methods to control tobacco use. The tobacco control policies include tax addition, price addition, advertising restrictions, packaging laws, secondary tobacco smoke restriction (smoke-free zones), (smoking bans), and tobacco trade reduction.
Chinese government also increases taxation on tobacco, which reduce tobacco demand and increase tax revenue. The cigarette taxes include ad valorem and specific duty, and the combined taxes accounting around 38% of the retail price of cigarettes. A 10% raise in cigarette tax would increase government revenues by 27%. If increase cigarette tax per pack from 40% to 50%, the increase in central government tax revenue would be twice more than the loss in industry revenue, tobacco farmers’ incomes, and local tax revenue. Moreover, this tax increase could save about 1.44 to 2.16 million lives. Therefore, additional taxation on cigarettes might be a desirable public policy to reduce smoking in China (Hu et al. 17).
Increasing tax would raise the price of tobacco products. This policy is an effective way to persuade young people to stop or not to start smoking. Increasing price is effective intervention for young people, because people with lower incomes tend to be more sensitive to price increases. However, increase taxes only a...

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Hu, T. W., and Zhengzhong Mao. "Effects of cigarette tax on cigarette consumption and the Chinese economy." Tobacco control 11.2 (2002): 105-108.

Hu, Teh-Wei, and Zhengzhong Mao. "Economic analysis of tobacco and options for tobacco control: China case study." (2002).

Hu, T. W., et al. "China at the crossroads: the economics of tobacco and health." Tobacco Control 15.suppl 1 (2006): i37-i4

Hu, Teh-wei, et al. “Tobacco control policy analysis in China: economics and health.” Vol. 12. World Scientific, 2008.

Lynn. “Yunnan to strengthen control over smoking.” InKunming May 20, 2011

Matthew Miller. “Yunnan wants to kick tobacco habit.” South China Morning Post [Hong
Kong] 22 Dec 1997: 4

Siekman, Dan. “Yunnan preparing warily for China smoking ban.” Features May 31, 2010

“Tobacco control proponents make their voice heard in Yunnan Province, the heart of tobacco

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