Tobacco Tax Law of the People's Republic of China

Order of the President of the People's Republic of China No.84

December 27, 2017

The Tobacco Tax Law of the People's Republic of China, which was adopted at the 31st session of the Standing Committee of the 12th National People's Congress of the People's Republic of China on December 27, 2017, is hereby promulgated and shall come into force as of July 1, 2018.

Xi Jinping, President of the People's Republic of China

Tobacco Tax Law of the People's Republic of China

(Adopted at the 31st session of the Standing Committee of the 12th National People's Congress on December 27, 2017)

Article 1 The entities purchasing tobacco within the territory of the People's Republic of China in accordance with the provisions of the Law of the People's Republic of China on Tabaco Monopoly shall be tobacco taxpayers. Taxpayers shall pay tobacco tax in accordance with the provisions hereof.

Article 2 For purposes hereof, tobacco refers to flue-cured tobacco and air-cured tobacco.

Article 3 Tobacco tax base shall be the total price actually paid by taxpayers when purchasing tobacco.

Article 4 The tobacco tax rate shall be 20%.

Article 5 Tobacco tax payable shall be calculated by multiplying the total price actually paid by taxpayers when purchasing tobacco by the tax rate.

Article 6 Tobacco tax shall be levied by the tax authorities in accordance with this Law and the relevant provisions of the Law of the People's Republic of China on the Administration of Tax Collection.

Article 7 Taxpayers shall declare and pay tobacco tax to the competent tax authorities in the places where the tobacco is purchased.

Article 8 The time of tax liability shall be the date when taxpayers purchase tobacco.

Article 9 Tobacco tax shall be levied on a monthly basis, and taxpayers shall declare and pay the tobacco tax within 15 days after the end of the month when the tax liability arises.

Article 10 This Law shall come into force as of July 1, 2018. The Interim Regulations of the People's Republic of China on Tobacco Tax promulgated by the State Council on April 28, 2006 shall be abolished simultaneously.