WHO Recommends Higher Tobacco Tax In China

Source from:  Bernama 05/29/2014

A World Health Organisation (WHO) official says Wednesday China should raise taxes on tobacco products to reduce smoking rates and save lives, Xinhua news agency reported.

"Policy makers should substantially increase taxes on tobacco while ensuring that the increase is passed on to the retail price of tobacco products," said Dr. Bernhard Schwartlander, WHO Representative in China.

"This is the single most effective measure authorities can take to reduce the death, disease and economic harm tobacco is causing China's society and economy," he said.

Earlier reports citing China's health authorities said tobacco consumption kills around one million people in China every year.

WHO says a 10-percent increase in the price of tobacco products in low and middle income countries would lead to a 5 percent reduction in tobacco use.

In China, increasing the price of a pack of cigarettes by just 1 yuan (about US$0.16 cents) could reduce annual consumption from 125 billion packs to about 100 billion packs, and generate additional tax revenue of over 200 billion yuan (US$31.98 billion).

The WHO's Framework Convention on Tobacco Control which came into force in China in 2006 recommends that countries increase tobacco taxes taking into account national health objectives concerning tobacco control.

WHO recommends that excise taxes represent at least 70 percent of retail price of cigarettes. Enditem