China to levy consumption tax on e-cigarettes from November

Asian Tech Press (Oct 26) -- China will levy consumption tax on e-cigarettes from November.

China's Ministry of Finance, the General Administration of Customs and the State Taxation Administration jointly issued a notice on Tuesday that since November 1, 2022, the country will include e-cigarettes in the scope of consumption tax, and add a sub-item for electronic cigarettes under the cigarette tax item.

The notice specifies that the consumption tax taxpayers include enterprises and individuals producing or importing, wholesaling electronic cigarettes in the People's Republic of China.

The new rules require an ad valorem tax on e-cigarettes, with a 36% tax rate on production (import) and an 11% tax rate on wholesale.

The notice also pointed out that the export tax rebate (exemption) policy is applicable to taxpayers exporting electronic cigarettes.

Industry insiders believe that the introduction of the policy is in line with expectations, will be conducive to the export of electronic cigarettes overseas, which is a favorable policy for the industry.

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