E-cigarette prices will be raised by nearly 11% for wholesalers (2)

Source: DHgate, Tag: Home Garden

The above-mentioned article also suggested that from the perspective of price matching, the ad valoram tax rate of e-cigarettes in the production and wholesale links should be consistent with that of Class A cigarettes, that is, the ad valoram tax rate of 56% in the production link and 11% in the wholesale link. The ad valoram rate is levied.

The basis is to take the products of a leading e-cigarette company listed on the market as an example: the sales price of the company’s disposable e-cigarettes is 39 yuan, and the number of puffs indicated on the product is about 300 times, which translates to a single puff cost of 0.13 yuan; The minimum selling price of e-cigarettes sold by the enterprise merger is 299 yuan. The product contains two pods. The number of puffs indicated on a single puff is about 500 times, and the cost of a single puff is about 0.30 yuan.

The above article also mentioned that the experimental test on heated cigarettes: each ordinary cigarette is smoked about 13 times, and if the cost of a single puff is 0.13 yuan (similar to disposable electronic cigarettes), the retail price per standard stick after conversion is 0.13 yuan. It is 338 yuan, which belongs to the first-class cigarette; if the cost of a single puff is about 0.30 yuan (similar to the e-cigarette sold in combination with the e-cigarette with separate cartridges ), the retail price per standard stick is 720 yuan, which also belongs to the first-class cigarette.

Before the "Announcement", e-cigarettes did not pay the largest piece of tobacco taxation, that is, consumption tax. At present, cigarette consumption tax applies different tax rates to Class A cigarettes and Class B cigarettes in the production process: Class A cigarettes, that is, the allocated price per standard stick (200 sticks, the same as below) is above 70 yuan (excluding value-added tax, the same below) (including 70 yuan) cigarettes, the tax rate is 56%, and the tax rate is 0.003 yuan per stick; Class B cigarettes, that is, cigarettes with a price of less than 70 yuan per standard stick, the tax rate is 36%, and 0.003 yuan per stick Collected according to the amount.

According to the article "Interviewing the relevant person in charge of the Tobacco Economic Research Institute of the National Bureau of Tobacco Industry on the Taxation and Benefits of the Tobacco Industry" published by the Oriental Tobacco News in 2018, the taxes related to tobacco industry in China mainly include tobacco leaf tax, consumption tax, value-added tax, income tax, and city tax. Maintenance and construction tax, education surcharge, etc. In addition, as a state-owned tobacco enterprise under the monopoly system, my country's tobacco enterprises need to pay state-owned capital gains and special after-tax profits in addition to various taxes. Calculated according to the proportion of the full-caliber taxes and fees paid to the national financial and taxation departments in the total sales of tobacco companies, my country's tobacco comprehensive tax burden is currently as high as 66.8%.

The introduction of a consumption tax on e-cigarettes can firstly increase fiscal revenue, and secondly, hope to adjust the healthy development of the e-cigarette consumption market through prices.

A tax researcher told reporters that under normal circumstances, manufacturers will sell their products to tobacco sales companies at a lower price, and the sales companies will then sell them to other wholesalers at normal prices. The consumption tax rate for the former is 56%, and the tax rate for the latter is 11%.

Compared with the tax rate of the traditional tobacco industry, the tax rate of e-cigarettes is not high, but based on the current market size of e-cigarettes, a stable tax scale can still be formed.

The above-mentioned article "Research and Analysis on the Collection of Consumption Tax on E-cigarettes" mentioned that the e-cigarette industry has undergone many innovations, and its products have basically stabilized. In 2021, the domestic e-cigarette market size (retail) will be 19.7 billion yuan, an increase of 36% from 14.5 billion yuan in 2020; the foreign e-cigarette market size (retail sales) will be 80 billion US dollars in 2021, a year-on-year increase of 120%, and the three-year compound growth rate The rate is 35%. These indicate that the e-cigarette industry has passed the introduction period and is in the growth period. Compared with the introduction period, enterprises in the growth period no longer simply invest in capital, and product promotion is basically in place. The rapidly growing sales revenue has become a reliable tax source for e-cigarette consumption tax.

According to the 2021 "E-cigarette Industry Blue Book" data, as of the end of 2021, there are more than 1,500 e-cigarette manufacturing and brand-related companies in China, including more than 1,200 manufacturers, more than 200 e-cigarette brand companies, and about 120 e-cigarette manufacturers. oil companies. In 2021, the market size of China's e-cigarette industry will reach 19.7 billion yuan, a year-on-year increase of 36%.

"It can be seen from the scale of the industry that although the total amount of consumption tax for e-cigarettes is not very large, it increases the cost of e-cigarettes, and it is important to ensure the current tobacco tax revenue." The above-mentioned researcher said.