State council raises cigarette tax to 11%

China’s cigarette tax has risen from 5% to 11% with incoming funds passed to wholesalers and then on to consumers, The Wall Street Journal reported, citing an announcement from the State Council. The council didn’t explain the move, but the new taxes may help simultaneously discourage smoking in a country that produces 43% of the world’s cigarettes and which is home to more than 300 million smokers while also generating more tax revenue amid an economic slowdown. National fiscal revenue was up 3.9% in the first quarter this year compared to growth of 9.3% for the same period in 2014.