China to introduce new taxes on e-cigarettes

The Chinese Ministry of Finance will start imposing new taxes on e-cigarettes from November 1, reports Reuters. Thus, the production and import of electronic cigarettes will be taxed at 36%, and wholesale sales at 11%.

The Chinese government regularly imposes restrictions on e-cigarette manufacturers to protect the interests of China Tobacco, a state-owned tobacco company controlled by the State Tobacco Monopoly Administration. It is the management that sets the rules for the operation of companies in the tobacco and electronic cigarette markets. For example, in 2021, it required manufacturers of electronic cigarettes to obtain a license from it, allowing the sale of their products in China. And since October 1, the sale of electronic cigarettes with any aromatic additives, except for the taste of tobacco, has been banned in the country.

Kirill Sarkhanyants