Optimization of China's Tobacco Tax Policy: A Study Based on the Perspective of Public Health and Fiscal Revenue Balance

Abstract

 The current tobacco tax system in China has structural issues, including low tax rates and unreasonable tax collection stages, which significantly hinder the implementation of tobacco control policies. It has been confirmed that the current tax rate has a significant gap with the international standard recommended by the World Health Organization, which greatly weakens the regulatory effect of price on tobacco consumption. The tax collection model, primarily based on the production stage, has strengthened the dependence of local finance on the tobacco industry, thereby forming a potential barrier to tobacco control efforts. In response to the above predicament, this paper proposes a systematic reform plan: gradually increase the tobacco tax rate to enhance the constraint of the price lever on consumption behavior; abolish the tobacco leaf tax to optimize the tobacco planting structure and reduce the tax burden on tobacco farmers; expand the tax collection scope and include new tobacco products such as electronic cigarettes in the tax collection system; integrate the taxes of the production and wholesale stages to simplify the tax collection process; set up a special tobacco control fund for the special use of smoking hazard publicity and smoking cessation intervention services. These reform measures aim to achieve the dual goals of stable fiscal revenue and improved tobacco control effectiveness, providing theoretical support and practical reference for the subsequent optimization of tobacco tax policies.