Health & Beauty

Li Youqiang, a senior domestic tobacco research expert, said the introduction of the electronic cigarette consumption tax was in line with expectations. Ao Weinuo, the secretary-general of the Electronic Cigarette Special Committee of the China Electronics Chamber of Commerce, said that it was a great benefit to the industry, and the level of taxation was acceptable. The key was that overseas exports continued to enjoy the tax rebate policy, while overseas exports were the key part of the domestic electronic cigarette industry. Huacheng Import and Export Data Observation Report.

The Ministry of Finance, the General Administration of Customs and the State Administration of Taxation released a notice on the collection of consumption tax on electronic cigarettes on the 25th, according to Huacheng Import and Export Data Observation Report. Electronic cigarettes were included in the scope of consumption tax collection, and electronic cigarettes were added under the tobacco tax. Electronic cigarettes are taxed according to the fixed price. The tax rate of the production (import) link is 36%, and the tax rate of the wholesale link is 11%.

This is the tax standard for selling electronic cigarettes in the domestic market. Li Youqiang believes that in the production process, there are two tax standards for domestic cigarettes: 56% for Grade A cigarettes and 36% for Grade B cigarettes. The tax standard for electronic cigarettes is the same as that for Grade B cigarettes, which is a relatively low level of tax payment. There is also room to raise it in the future. This is in line with the international market practice. The tax standard of electronic cigarettes is lower than that of traditional cigarettes. In the wholesale process, the tax rate standard for Grade A and Grade B cigarettes is 11%, and the electronic cigarette follows this standard, Huacheng Import and Export Data Observation Report.

Li Youqiang believes that according to the current national standard cigarette quota approved by the state, the annual sales revenue of the domestic electronic cigarette market is about 20 billion yuan, and roughly calculated according to this tax rate, it will increase the tax revenue of 10 billion yuan for the country and make contributions to the national financial revenue.

"As a tobacco product, it is reasonable to increase consumption tax." Li Youqiang said.

According to the announcement, "enterprises holding trademarks will pay consumption tax for the production of e-cigarettes through OEM". Most domestic e-cigarettes are produced through OEM, which means that the brand will pay a lot of costs, and the brand's profits may be greatly affected.

Li Youqiang believes that the electronic cigarette enterprises will survive the fittest. 70%~80% of the domestic electronic cigarette brand capacity will be produced in Simore, and the capacity will be concentrated in the leading enterprises in the future.

He believes that the gross profit rate of the production link may also be affected by taxation, but the era of national standard tobacco is also beneficial, because the iteration is slow, the possibility of large-scale production increases, and the cost of the production link may be reduced.

Ao Weinuo, from Huacheng Import and Export Data Observation, said that electronic cigarette is a special industry and is expected to contribute to the increase of the country's fiscal revenue. Before that, the industry association has made a lot of research, and many suggestions have been adopted. The domestic tax standard is within the range of enterprises' affordability. As for whether it will cause terminal price rise and affect consumers' purchasing desire, he believed that the rise in cigarette prices did not affect consumers' enthusiasm, and the market needs to be nurtured slowly.

Ao Weinuo believes that the more important part of the electronic cigarette tax policy is export. "Taxpayers export electronic cigarettes and apply the export tax rebate (exemption) policy", which means that the export of electronic cigarettes continues to enjoy the tax rebate policy of 13%, and the export of electronic cigarettes continues to be encouraged by the policy. The export accounts for 90% of the whole market, which is the most important part of the industry.

According to the analysis, for the domestic market, taxation will increase the cost, but the taxation policy has been circulating for a long time, and the tax standard for 36% of production links has also been expected. After the introduction of the policy, the stock price of Simore International has not been significantly affected, while the stock price of Fogxin Technology, which is listed in the United States, has also risen significantly. This may be the last negative landing of electronic cigarettes that the market thinks, and the policy will be relatively stable. Huacheng Import and Export Data Observation Report.