China will impose steep consumption taxes on e-cigarettes starting November 1 to promote public health, the Ministry of Finance said Tuesday, reports Caixin.
A 36% tax will be imposed on the production or importation of e-cigarettes, and an 11% tax will be levied on wholesale distribution of e-cigarettes, the ministry said. China does not tax cigarettes at the retail level.
Previously, e-cigarettes like ordinary commodities were subject only to value-added tax, without the consumption tax imposed on regular cigarettes. That made the total tax burden much lower than on traditional tobacco products.