Gov't Slaps Tax Increases on Tobacco Wholesalers

(Beijing) – The government has raised taxes that tobacco wholesalers must pay, a move experts say will raise prices consumers pay and help cut smoking.

The Ministry of Finance and the State Administration of Taxation said in a notice released on May 8 that a tobacco tax wholesalers pay would be raised from 5 percent of total sales to 11 percent. Wholesalers will also pay an extra 0.005 yuan for each cigarette they sell.