Study On The Influence Of Cigarette Consumption Tax On Cigarette Sales And Financial Revenue

The vigorous development of tobacco industry in China not only brings huge financial revenue to the government,but also has a negative external effect on the national health and economic development.The use of tax means to influence cigarette consumption is internationally recognized as an effective means.Whether it is necessary for China’s cigarette consumption tax to further improve,whether tax raising will affect the contribution of the tobacco industry to the financial revenue,how to improve the cigarette consumption tax and supporting policies to control cigarette consumption more effectively are the main objectives of this thesis.In this thesis,the theoretical and empirical analysis of the macro-level changes in China’s cigarette excise tax on how to affect cigarette sales and fiscal revenue analysis.In this thesis,first of all,starting from the connotations of China’s cigarette excise tax with Treasury tax,Pigou tax and luxury goods tax,the factors to be considered in adjusting the excise tax are put forward,combining with the theory of market failure,the theory of demand price elasticity and the theory of consumption tax system optimization,the necessity of cigarette consumption tax adjustment,how the tax burden affects the sales through the price and the principles to be followed in the adjustment are introduced.On the basis of theory,this thesis analyzes the current situation of cigarette sales,the tax system of tobacco industry,the level of cigarette tax burden and the current situation of financial revenue,it also analyzes the special pricing mechanism of cigarette and how the system of tobacco industry impedes the reform of cigarette consumption tax in China.Based on the above analysis,through the selection of variables,data collection,the establishment of a measurement model to calculate the price elasticity of China’s cigarette demand,this thesis selected the panel data from 2011 to 2018 for the study,taking cigarette sales volume as explanatory variable,cigarette price and per capita consumption expenditure as explanatory variable,and other influencing factors as control variable,the regression analysis was carried out through STATA.According to the regression results and the existing research results,-0.50 and-0.15 are selected as the elastic values to simulate the impact of cigarette excise tax on cigarette sales and fiscal revenue.The empirical conclusion is drawn: raising the cigarette consumption tax can not only control the cigarette sales,but also increase the financial revenue.Finally,according to the conclusion of the empirical study and the deficiency of the current cigarette consumption tax,the thesis puts forward the suggestion of consummating the cigarette consumption tax.Specifically,it includes: changing the cigarette consumption tax into the extra price tax,promoting the rationalization of the cigarette tax burden,changing the cigarette consumption tax into the collection of the retail link,and re dividing the tax ownership;reforming the tobacco monopoly system in China,and improving the relevant laws and regulations.