Expert urges higher taxes on cigarettes

Increase in levy is estimated to bring in extra 87.6 billion yuan in revenue for government

China should raise the tax on cigarettes further to reduce the use of tobacco, and the increased revenue could be invested in the health and medical sectors, an expert said on Monday.

On Friday, the Ministry of Finance raised the consumption tax on the wholesale price of cigarettes from 5 percent to 11 percent. Cigarettes are now also taxed at 0.005 yuan each. The changes took effect on Sunday.