Study On The Problems And Countermeasures Of Tobacco Consumption Tax In China From The Perspectives Of Game Theory

In order to further reduce the impact of smoking on the economy and society,in 2003,China signed the Framework Convention on tobacco control,and strengthened tobacco control by introducing various regulations,publicity and other means.Compared with other methods,tobacco control by tax got the best effect.Therefore,the Chinese government has been trying to carry out reform and adjustment on tobacco consumption tax for many times.After the tax reform in 2015,cigarette sales fell for the first time in 20 years.The method of tobacco control by tax increased the government revenue,but the implementation of this policy also produced some negative externalities that the huge economic benefits draw the government to protect the tobacco industry,so the tobacco control by tax would meet multiple obstacles.This paper focusing on the reform of tobacco consumption tax in China objectively analyzed the problems existing in the current reform process of tobacco consumption tax and the main interests of all parties in the situation of tobacco control from the perspective of game theory,then established relevant models.Through the research,it is considered that the main factors of influencing tobacco consumption tax reform are the separation and improper adjustment of the central and local interest objectives,and the monopoly mechanism of government enterprise integration.Because of the market economy system,the social demand is increasing and the advantages of enterprises and the public are expanding.The paper proposed that the polycentric governance in which multiple parties,including the government,the market,the enterprises,and the public,interact with each other,can complete tobacco control system.It’s also important to adjust tobacco consumption tax rate,tax link,tax structure and so on.The "government-enterprise separation" of tobacco companies and tobacco monopoly bureau,as well as other supporting measures should also keep up with the process of this reform.Then,combined with foreign advanced experience,This paper puts forward the countermeasures from three aspects : the optimization of tobacco consumption tax,the market-oriented reform and governance of tobacco industry,and the improvement of supporting measures,which are expected to be beneficial to the reform of tobacco consumption tax in China.