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11/02/2024 09:32:48 am

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WHO Urges China to Further Raise Taxes on Tobacco Products to Reduce Demand

China Smoking

(Photo : Photo by Kevin Frayer/Getty Images) Chinese men smoke together as they eat in the street on June 1, 2015 in Beijing, China. The World Health Organization (WHO) has urged China to increase taxes on tobacco products in a bid to cut down the high rate of smoking in the country.

The World Health Organization (WHO) has urged China to increase tobacco taxes and prices as a tried, tested and cost-effective way to save lives and reduce the disturbing high rate of cigarette smoking in the country. At least 1 million people in China are believed to lose their lives to tobacco-related illnesses every year.

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According to a WHO report on the Global Tobacco Epidemic 2015, which was released on Tuesday in Manila, the number of tobacco-related deaths will continue to rise each year unless the Chinese government takes systemic and determined actions to reduce the general smoking rate.

"Raising taxes on tobacco products is one of the most effective- and cost effective- way to reduce consumption of products that kill, while also generating substantial revenue," Dr. Margaret Chan, WHO Director-General said.

"I encourage all governments to look at the evidence, not the industry's arguments, and adopt one of the best win-win policy options available for health."

China is currently the world's largest producer and consumer of tobacco products with more than 300 million smokers in the country. The Chinese government has already implemented measures to reduce the demand for tobacco products by raising taxes.

In May this year, the Ministry of Finance announced an increase in tobacco taxation for wholesale purchases - taxes were raised from 5% to 11%. Purchases of a stick or a pack of 20 cigarettes also saw specific tax increments.

However, WHO thinks that a further increment of tobacco taxes by seven to 10 percent in China will particularly dissuade young people from picking up the deadly habit of smoking. This will also reduce the amount of young smokers aged between 13 to 15 years old, who currently make up about 11.2% of the country's smoking population.

"Higher prices stop young people from taking up the deadly habit of smoking. Raising tobacco taxes is therefore a particularly important tool for helping young people avoid the hazards of tobacco addiction," WHO's Representative in China Dr. Bernhard Schwartlander said.

"When tobacco prices rise, consumption falls, along with smoking-related death and disease. The higher the taxes and prices, the bigger the health - and broader social and economic - benefits."

Despite the WHO's investigations and report, some Chinese experts think that the increment of taxes is a good idea, but it should be implemented gradually.

Global Times reports that Yang Gonghuan, an analyst at the Chinese Association on Tobacco Control, said the government should increase tobacco taxes gradually in order to reduce the risk of conflict between government officials, tobacco consumers and producers.

On June 1, Beijing enacted a new law aimed at controlling smoking. The law, which is the strictest tobacco law ever to take effect in China, prohibits smoking in all indoor public places and several outdoor places including kindergartens, schools and child and maternal health facilities.

Strong penalties are stated for those who violate the new law including a fine of $32 (200 yuan). Owners and managers of venues where the law is broken would also be especially punished and fined up to $1,600 (10,000 yuan). After the first month of the smoking ban in Beijing, authorities have reportedly been able to collect up to $16,120 (100,000 yuan) in fines from violators.

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