Shanghai Tobacco Group top taxpayer in China

Source from:  Want China Times 02/17/2012

Shanghai Tobacco Group paid the most in taxes of any company in China during the fiscal year 2011, reports the Shanghai-based First Financial Daily. "Tobacco companies are subject to high taxes. That is why Shanghai Tobacco Group is the top tax payer, while the tobacco business is not prosperous at all (in China)," an anonymous source said. The newspaper reported that Shanghai Tobacco Group earned net profits of 15 billion yuan (US$2.4 billion) but paid a total of 43.7 billion yuan (US$6.9 billion) in taxes. The group accounted for roughly 7.4% of the entire nation's tax revenue. The source said that it is natural for governments to increase taxes on tobacco products in order to discourage smoking. "It is the mechanism for helping the public not to smoke," the source said. In addition to the tobacco companies, automakers were prominent among China's list of top taxpayers, accounting for three of the top 10. Enditem