Strange decree on cigarettes

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(China Daily)
Updated: 2009-05-06 07:44

The practice of a county in Hubei province ordering government departments to smoke a certain amount of local cigarettes strongly demonstrates that the shadow of administrative monopoly and power abuse still looms large in a market economy. It not only erodes economic health but also destroys social fairness, says a comment in Qilu Evening News. Excerpts:

The county government of Gongan, Hubei province, has issued a circular to explicitly stipulate what brand and how many cigarettes local departments should consume every year, and what the punishments would be meted out for unfulfilled targets. The decree would require nearly 4 million yuan worth of cigarettes to be consumed for meeting the target.

Although by tacit consent, in many places it is accepted that the consumption of cigarettes and hosting of banquets by officials will be at the cost of public money, it is still rare to see a local authority brazenly issue guidelines and assign tasks in the way it has been done by Gongan country. The circular would, doubtless, be the most ridiculous red-letter document of 2009.

What explains such a weird government order? It is actually in order to increase the local tax revenue from tobacco. Patently against the Anti-monopoly Law, the order is the result of local protectionism.

The government order is not only against common sense - of smoking being harmful health - but is also against the principle of prudence, and actually encourages waste of taxpayers' money. It is a form of administrative monopoly, which hampers the forming of an integrated domestic market and restricts the market competition. By breaking the market balance, it can lead to abuse of power.

When the exercise of power exceeds limits, rights would be adversely affected. To put an end to similar government orders, it is necessary to strengthen the implementation of the Anti-monopoly Law.

(China Daily 05/06/2009 page8)