Lei Xiangping

    lagon235@163.com

    ON May 8, the Ministry of Finance announced that the consumption tax on wholesale cigarettes would be raised from 5 percent to 11 percent and cigarettes would be also taxed at 0.005 yuan (US$0.0008) each. The tax hike, which took effect on May 10, means the selling price of cigarettes would increase by about 10 percent.

    Since higher price is considered as an effective tool by the World Health Organization to curb tobacco use, the recent tax hike has delighted many health experts and NGOs who have advocated higher prices to fight China’s nicotine addiction. However, given that tobacco control in China is a complicated problem, which needs a package of initiatives to fight, a tax hike alone will not do much good.

    For decades, China has levied a lower-than-international-standard tax on cigarettes, making cigarettes on the Chinese market very cheap. The tax hike is a long-overdue initiative dovetailing with the WHO’s request to increase prices. Yet, the tax hike is so slight — with tax accounting for only 43.5 percent of the selling price, lower than the WHO standard of 70 percent — that cigarettes are still not expensive enough to scare away smokers. A recent investigation by sina.com shows that 68.5 percent of sampled smokers will continue to buy cigarettes after the tax hike, and 67.7 percent of them don’t think the tax hike will effectively reduce tobacco consumption.

    Despite academic studies showing an increase in price by 10 percent can increase the number of adult smokers who willingly give up smoking by 3.7 percent, experience in China has proven otherwise. China raised the cigarette consumption tax in 2009. From 2009 to 2014, the average price of a pack of cigarettes increased from 7.1 yuan to 11.8 yuan, yet sales remained strong and the number of smokers increased. The official data show that the smoking rate for people above 15 is 28.1 percent, and over 300 million people are regular smokers.

    When a tax hike is not effective, other practical measures should be put in place. However, as the biggest tobacco market, China has not only benefited from the tobacco industry but also suffered huge losses, which in turn puts the government in a dilemma. This State-monopolized industry contributes over 1 trillion yuan to public revenue every year, accounting for one-10th of the total and employs a labor force of over 50 million people. However, smoking kills nearly 1 million people annually and over 14 billion yuan is spent on treating smoking-related diseases. The government has been very cautious about introducing tobacco control policies in order not to hurt revenue and employment, which is why the slight tax hike has been considered “ineffective.”

    Ironically, China has one government department responsible for both tobacco control and tobacco sales. The department has two different names: State Tobacco Monopoly Administration and China Tobacco Co. The former must take measures to control tobacco while the latter has to make profits by selling tobacco. When two contradictory roles co-exist in one department, together with the absence of outside supervision, the department has no motivation to control tobacco.

    Under current conditions, the best way to fight smoking is to tighten up legislation and strengthen law enforcement. Many cities are taking the initiative in fighting nicotine addiction on their own: Shenzhen passed a smoking ban in 2013 with penalties of up to 30,000 yuan and on June 1, Beijing banned smoking in all public areas. Many other smaller cities are also introducing or debating implementing their own anti-smoking laws. However, whether these cities can effectively implement smoking bans in public places remain to be seen.

    The newly revised Advertising Law bans tobacco ads via mass media, in public areas or on public transportation and outdoor billboards.

    In addition, smokers need to be softly persuaded and informed in friendly ways about potential smoking risks.

    Smoking cigarettes is addictive, and many smokers can’t or won’t quit just because of tax hikes or smoking bans. The media should publicize more public service announcements about smoking risks, families of smokers should try their best to talk them into quitting and tobacco companies should print warning signs and pictures on cigarette packages.

    The tobacco industry will not change overnight. Controlling tobacco remains an uphill battle. We need to continue to do what can be done and change what can be changed. It’s a long march, but we have to press ahead.

    (The author is an editor with the News Desk at China Radio International.)