Foreign health economics expert Hu Dewei: raising tobacco taxes has these advantages.

category:Global
 Foreign health economics expert Hu Dewei: raising tobacco taxes has these advantages.


Although China increased the cigarette consumption tax for two times in 2009 and 2015, it is far from the 70% retail price rate index proposed by the World Health Organization Convention on tobacco (hereinafter referred to as the Convention) (from 5% to 11% in 2015, from 5% to 0.005 yuan per cigarette), and by experts. Under the current level of tobacco tax, it is difficult to achieve the goal of tobacco control raised by healthy China 2030. Recently, Professor Hu Dewei, Professor of health economics at the University of California, Berkeley, a Chinese American, visited China by the former foreign health economist of the Ministry of health, and again offered suggestions for Chinas tobacco tax reform. He said in an interview with the surging news that the global experience has proved that raising taxes on cigarettes can be very effective in reducing consumption. For China, raising tobacco taxes is a three win way to reduce smoking rates, increase government revenues and reduce future medical costs. The most powerful tobacco control weapon that the government can use is revenue. Hu Dewei, who has been engaged in tobacco tax research for 30 years, said that China is a big country in tobacco consumption. According to the target of tobacco control proposed by healthy China 2030, China should focus on the tax on tobacco tax. At present, China should give priority to the tax amount of 2-3 yuan per package on the wholesale price (the current tax amount is 0.10 yuan per package). The factory price (the allotment price) (the current tax is 0.06 yuan per pack) and the unified and two class factory price ad valorem tax rate is 56%. This tax data is the result of many years of research by Hu Dewei and domestic experts. The relevant research contents are published in the book Chinas tobacco control demand and supply research: Policy Analysis and practice published in April this year. This is Hu Deweis first visit to China in 2018, after which he visited China more frequently. Hu Dewei, 80 years old, has helped the multinational government to formulate and introduce relevant tobacco tax policies in the 30 years of research on tobacco tax. A few years ago, at least four or five times a year, its too long to travel by air, and jet lag is not coming. He groped his head and laughed. Wearing a briefcase, wearing a striped shirt and a black suit, he could not see that he was an old man in his prime year. Hu Dewei, a native of Shanghai, went to Taiwan in 1949 with his parents, went to the United States in 1961 and received his PhD in economics at University of Wisconsin, and engaged in economic research in the United States. In 1988, the California government found that I wanted to reduce smoking by increasing taxes. In the United States, it was the first government to put forward this view in the United States, and the rate of smoking in California was 22% in 1988. By the referendum, people wanted to reduce this proportion to 17%, California, in California. The government asked me, Professor Hu, how much tax do we need to raise? I didnt smoke control at that time. I was studying econometrics, and I started studying tobacco tax since then. Hu Dewei, who has been engaged in health economics research, has been an expert adviser to many international organizations and consulting companies, such as WHO, the world bank, the United States Rand Co and other international organizations, and has great influence in the international health economy. As a Chinese American, Hu Dewei often returned home to participate in a large number of training programs in the public health field, carried out training lectures at various domestic colleges and universities, spread the theory of health economics, and helped many young scholars in the Chinese health economics community to study abroad and be visiting scholars. According to media reports, in 2009, the former Ministry of health officially hired him as the chief health economics expert of the Ministry of health and health economics. This is the first time that China has hired foreign experts in health economics. The impact of tobacco tax on smoking, financial revenue and medical expenditure is increased. The current tobacco tax price is difficult to influence the residents ability to pay. At the end of May last year, at the meeting on tobacco tax reform held in Chengdu, Sichuan, Hu Dewei was an expert at the meeting. This time, he once again made suggestions for Chinas tobacco tax reform. At present, Chinas tobacco epidemic is still grim, smoking rate is about 27.7%. According to the survey published by the national health and Health Committee (National Health and health care Commission) and the China Center for Disease Control and prevention, more than 1 million people die from smoking related diseases every year in China, and another 100 thousand people have died of second-hand smoke exposure. If effective measures are not taken to reduce tobacco use, the number of tobacco related deaths in China is expected to reach 3 million by 2050. The healthy China 2030 program issued in 2016 has been proposed to increase the intensity of tobacco control and improve the effectiveness of tobacco control by means of price, tax and law. It is clear that by 2030, the smoking rate of people over 15 years old is reduced to 20%. But a number of tobacco control people have previously said that in the current public places of non-smoking legislation, tobacco tax is not high, smoking box warning packaging is not in place, if you want to achieve healthy China 2030 tobacco control goal is difficult. The most powerful tobacco control weapon that the government can use is revenue. Hu Dewei believes that Chinas current tobacco tax is not enough to affect the consumption ability of smokers, so as to achieve the purpose of tobacco control. After the entry into force of the Convention, two tobacco taxes were raised. According to Hu Dewei, the first time is May 2009, because the tax price is not linked, the increase of the tax rate is almost consumed by the tobacco companies, not in the retail price, so there is no substantial impact on consumer behavior. The second tax was made in May 2015, although the retail price of cigarettes increased by an average of one yuan per package, although it realized the linkage of tax prices, but the effect of the Chinese tobacco price structure was limited. With the growth of Chinas economy and the improvement of the income level of the residents, the capacity of the residents cigarettes to pay increased continuously. The actual price of smoke is getting cheaper. Wang Longde, President of the Chinese Academy of engineering and President of the Chinese society of preventive medicine, pointed out that China is the first big country in tobacco production and consumption. Data show that in 2016, 2 trillion and 382 billion 580 million cigarettes were produced in China, and 46 million 992 thousand cigarettes were consumed. There were more than 300 million huge smokers. The health and economic impact of smoking is shocking, especially in countries with high smoking rates in China. Hu Dewei said. The economic losses caused by smoking are divided into direct and indirect losses. According to the published report, the economic burden attributable to smoking in 2000 was $5 billion (RMB 41 billion 392 million) in China. In 2008, the figure was 28 billion 900 million dollars (200 billion 713 million yuan), accounting for 3% of the total health cost in the same year. With the introduction of advanced medical technology and the impact of rising prices, the related medical and health costs showed a significant growth trend. California experience: the smoking rate dropped from 22% to less than 11% Hu Dewei said California was the first to raise tobacco tax for tobacco control in 1989, followed by a follow-up study that found no reduction in smoking consumption and second tax increases in 1995. After a full 30 years, the smoking rate in California dropped from 22% to less than 11%, the second lowest state in the United States. The lowest is Utah, because the religion they believe is not allowed to smoke. Hu Dewei added that the success of Californias tobacco control is not a one-time success, and not only the role of tobacco tax, but also a lot of non tax means. California has promulgated a lot of smokeless legislation to make smokers feel embarrassed and the social atmosphere is changing. After California, many states in the United States and other countries, such as Australia and Thailand, adopted this policy successively. Moreover, since 2012, at least 11 countries have increased the retail price of cigarette duty rate by more than 75%, and 106 countries have increased a small amount of tobacco tax rate. But the number of smokers in China is still increasing. On the one hand, the population continues to increase, and on the other hand, the tax increase is not strong enough. Hu Dewei cited four cases in Mexico, Philippines, Russia, and the United States, and these countries are adding fiscal revenue to programs such as medical and health services. For example, as a developing country in Philippines, Philippines in 2012 reduced the amount of tax from the 4 category (per package of 7.7-28.9peso) to a unified packet of 30peso (Peso), and an annual increase of 4% after 2017. In 2015, cigarette sales decreased by 28%, smoking rate decreased from 28.3% (2012) to 22.7% (2015), and tobacco tax revenue increased from 0.4%GDP (2012) to 0.78GDP% (2015). Facts prove that for the government, tobacco tax is a three win means. Hu Dewei said. Tobacco tax increases will restrict teenage smoking At present, the average retail price of Chinese cigarettes is 13 yuan per package. In the vast majority of the market in the country, especially in the low income areas, many smokers still consume five types of cigarettes with a price of about 3 to 5 yuan. The existence of this very low price cigarette weakens the effectiveness of the tobacco tax policy adjustment in the field of tobacco control and increases the initial sucking of young people. The possibility of smoking and smoking addiction. Hu Dewei said, after tobacco tax raises, the most direct impact of cigarette retail prices will be the youngsters. As the prices of tobacco sales rise, young people may smoke because of inadequate purchasing power and do not smoke. For smokers, smoking will decrease, even lower smoking rates, and smoking rates reduce the incidence of related diseases. The decrease in risk is attributable to a reduction in smoking loss. This March 1st, the WHOs WHO tobacco control and economic policy cooperation center issued the first survey report on the attitude of the national tobacco tax. Price is an important factor that affects and restricts peoples consumption of tobacco. For adolescents who lack independent income and limited economic capacity, this restrictive effect is particularly evident. Through the price lever, the teenagers can not buy more cigarettes and keep away from the threat of tobacco, so as to achieve the target of tobacco control proposed by the 2030 program of healthy China. Zheng Rong, a professor at the University of International Business and Economics, told the press that the calculation showed that after a substantial increase in tobacco tax, the smoking rate of young people was reduced and the governments taxes had not been reduced. Low tax prices do not protect the rights and interests of smoking consumers For the next step in Chinas tobacco tax adjustment, Hu Dewei suggested raising the retail price of cigarettes by $3 or even four yuan per packet (according to the previous poll). If the package is increased by three to four yuan, the retail price tax rate will rise to about 64% to 66%. The governments revenue is estimated to be increased by 280 billion yuan (three yuan per package) or $370 billion (an increase of four yuan per package). It is estimated that the number of smokers will be reduced by 6 million, and the future medical costs will be reduced by more than 400 billion yuan. Hu Dewei suggested that Chinas tobacco tax should be given priority to from the quantity tax. At present, the tax amount of 2-3 yuan per package is added to the wholesale price (the current tax amount is 0.10 yuan per package), and the second consideration is the factory price (the current tax amount is 0.06 yuan per package), and the two type of factory price from the price tax rate to 56%. From the same amount of tax, administrative costs are the lowest. Hu Dewei said, if we take the above recommendations, Chinas cigarette rate will be close to WHO 70% retail price tax rate indicators. Hu Dewei also suggested that Chinas increased tobacco taxes could be used for poverty alleviation and public health care. In the case of tobacco tax, the opposition believes that the legitimate rights and interests of tobacco consumers should be guaranteed. In 2014, Li Baojiang, director of the Policy Research Office of the National Bureau of tobacco economics, said in an interview with the media on tobacco tax raising, although smoking is harmful to healthy people, it should not be ignored that the demand for tobacco is objective, tobacco products exist legally, and the legitimate rights and interests of tobacco consumers should be subject to public health. The protection of equality. He believes that Chinas current tobacco tax policy has many taxes, high tax rates and large tax rates. In general, the tax burden is more appropriate, which not only effectively guarantees the national fiscal revenue, but also strictly controls the blind development of the tobacco industry. Hu Dewei disagrees: for tobacco as a special consumer product, low tax price is not protecting consumers rights and interests. Smoking is harmful to health and consumers use money to buy tobacco, he said. Not only does family income decrease, but also the medical burden of families is increased. Smoking in low income groups will lead to family poverty. The source of this article: surging news editor: Zhang Xianchao _NN9310 In the case of tobacco tax, the opposition believes that the legitimate rights and interests of tobacco consumers should be guaranteed. In 2014, Li Baojiang, director of the Policy Research Office of the National Bureau of tobacco economics, said in an interview with the media on tobacco tax raising, although smoking is harmful to healthy people, it should not be ignored that the demand for tobacco is objective, tobacco products exist legally, and the legitimate rights and interests of tobacco consumers should be subject to public health. The protection of equality. He believes that Chinas current tobacco tax policy has many taxes, high tax rates and large tax rates. In general, the tax burden is more appropriate, which not only effectively guarantees the national fiscal revenue, but also strictly controls the blind development of the tobacco industry. Hu Dewei disagrees: for tobacco as a special consumer product, low tax price is not protecting consumers rights and interests. Smoking is harmful to health and consumers use money to buy tobacco, he said. Not only does family income decrease, but also the medical burden of families is increased. Smoking in low income groups will lead to family poverty.