Cigarette taxation in China: lessons from international experiences

This paper draws upon the experiences of foreign countries in implementing tobacco taxation to provide lessons the Chinese government can use when considering the feasibility of raising additional taxes on cigarettes. Based on current international data and Chinese published data, this paper concludes that there is still leeway to raise existing taxes. The Chinese government should consider conducting some pilot experiments in tobacco tax increases, with some of the new revenues allocated for tobacco control programmes as well as for financing healthcare services among the poor.