CHINA is set to raise the wholesale tax rate for cigarettes to 11 percent from 5 percent, the Ministry of Finance said Friday, in a move to deter smokers in the world’s biggest maker and consumer of tobacco.

    China has accelerated a campaign against smoking over the past year, despite persistent opposition from the tobacco industry. Domestic and foreign anti-smoking activists say China’s cigarette habit has come at a heavy cost to the healthcare system.

    The nation’s parliament passed legislation last month banning tobacco ads in the mass media, public places, on public transport and outdoors.

    Cigarette wholesalers must also pay an additional 0.005 yuan (less than one cent) per cigarette sold, a statement said, adding that the increase would come into effect Sunday.

    Gan Quan, director of the China office for the non-profit International Union Against Tuberculosis and Lung Disease, told Reuters the development was welcome but didn’t go far enough.

    “It’s good news because raising the tax will result in higher prices, and that will help keep young people from smoking,” he said. “At the same time, in terms of the extent of the tax hike, it’s still a long way from other countries that have done very well in curbing smoking.”

    China is home to 300 million smokers and 740 million more who are exposed to second-hand smoke, domestic media has reported.

    The State Council, China’s Cabinet, has issued a draft regulation to ban indoor smoking, limit outdoor smoking and end tobacco ads. Many cities have already banned smoking in public places, but critics say those curbs are enforced unevenly, or not at all.(SD-Agencies)