The government of China will impose new šauksmas tax on Nov. 1. The announcement was made public during a joint press briefing that brought together the State Taxation Administration, the General Administration of Customs, and the Chinese Ministry of Finance.
Pasak daugelio naujienos outlets, the 2-prolonged tariff will comprise a 36% tax on the gamyba or importation of vape products, as well as a supplementary 11% taxation on the wholesale market (in China).
The levy comes after nearly a year of turmoil for Chinese vaping enthusiasts and the e-cigarette business, during which the government tightened its grip on the Chinese domestic vaping sector, imposing production requirements and restricting Chinese citizens’ vaping product options.
Will vapers in other nations be affected by the tax?
Although the information is scarce, several news sites are suggesting that products made for export may be exempt from taxes. The government press statement claimed that an “export tax refund and exemption policy would be applied for taxpayers exporting e-cigarettes,” as reported by Global Times.
The article further said that “exports can continue to benefit from the tax rebate scheme,” and that “e-cigarette exports will be supported.”
If this is right, it will be disappointing naujienos for Chinese e-cigarette smokers but wonderful naujienos for everyone else. Almost all vaping devices sold across the world are made in China. A significant levy on Chinese producers’ exported goods would influence pricing elsewhere.
A vape tax will aid in the protection of tobacco sales
According to the government news outlet Xinhua, the levy will “enhance the consumption tax regime and better fulfill its duty of promoting healthy spending.”
In essence, the tariff will assist shield the cigarette industry run by the government from rivalry for less risky non-combustible tobacco products. Tobacco account for around 5% of the Chinese annual budgetary tax revenue. Over 300 million of 1.4 billion Chinese citizens smoke cigarettes.
The levy will go into force approximately one year after the Chinese State Tobacco Monopoly Administration (STMA) took charge of the vaping business. The STMA governs all aspects of China’s vast tobacco sector, including quality control, production procedures, pricing, licensing, and distribution. It shares the same building as China National Tobacco Corporation, the largest cigarette factory in the world.
Authorities began developing standards and guidelines for producers, distributors, and retailers when the state tobacco monopoly was granted power over the vaping sector. The procedure has been quick, with many key regulations enacted in the last 11 months. As of October 1, only tobacco-skonio e-skystis could be used in vaping goods marketed in China.
