• July 24, 2024

Leaf tax to remain

 Leaf tax to remain

Chinese lawmakers began yesterday a review of a draft law on leaf-tobacco tax, according to a Xinhua Newswire story.

The law is due to replace a regulation that has been in place since 2006, but it is not expected to alter the rate of tax levied on leaf.

The draft law was given a first reading at a five-day bimonthly session of the National People’s Congress Standing Committee, which opened on Monday.

The law stipulates that a tax rate of 20 percent will be levied on tobacco leaf buyers, the same rate as was levied under the previous regulation.

China began collecting tax on leaf tobacco sales in 2006.

Revenue from the tax was said to have increased by an average of 12 percent between 2006 and 2016 and to have totaled 109.7 billion yuan (US$16.6 billion) during that period.