Article re-cap
- Public health experts recommend raising cigarette taxes in Beijing to address economic and health costs.
- A woman at a bus stop asked a smoker to put out their cigarette, leading to an online discussion about stricter restrictions.
- The tobacco industry's combined net profit and tax revenue reached over US$243.5 billion in 2025, surpassing that of China's largest bank by nearly four times.
- A recent study found that raising cigarette taxes from 5% to 11% in 2015 did not offset the economic damages caused by the industry.
- The incident has sparked discussions on how to balance economic growth with public health concerns, especially among young people who are increasingly calling for stricter smoking restrictions.
A recent incident in Shenzhen has reignited a debate about China’s smoking culture, as experts question whether the tobacco industry is harming the economy.
Public health experts say Beijing should raise taxes on cigarettes for the first time in over a decade to address economic and health costs. A woman at a bus stop asked a smoker to put out their cigarette, leading to a heated exchange and an online discussion about stricter restrictions.
A recent study by the University of International Business and Economics (UIBE) found that while tax rates on cigarettes were raised from 5% to 11% in 2015, it did not offset the economic damages caused by the industry. The tobacco industry’s combined net profit and tax revenue reached a record high of more than 1.65 trillion yuan (US$243.5 billion) in 2025, up 3.5% from the previous year and outperforming that of China’s largest bank by nearly four times.
The incident has sparked discussions on how to balance economic growth with public health concerns, especially among young people who are increasingly calling for stricter smoking restrictions. Public opinion is shifting towards advocating for higher taxes on cigarettes in Beijing to mitigate the negative impacts on both economy and population health.
Frequently asked questions
What is the current state of cigarette taxes in Beijing?
Currently, cigarette taxes in Beijing have not been raised since 2015 when they were increased from 5% to 11%. This has sparked debates on whether this is sufficient to address economic and health costs.
What was the combined net profit and tax revenue of the tobacco industry in 2025?
In 2025, the combined net profit and tax revenue of the tobacco industry reached a record high of over US$243.5 billion, outperforming that of China's largest bank by nearly four times.
Why did experts recommend raising cigarette taxes in Beijing?
Experts recommended raising cigarette taxes to address economic and health costs. A recent study found that even with a 16% increase from 2015, the industry's profits and tax revenue remained high.
What is the impact of the tobacco industry on Beijing’s economy?
The tobacco industry contributes significantly to Beijing's economy. In 2025, its combined net profit and tax revenue reached over US$243.5 billion, surpassing that of China's largest bank by nearly four times.
What is the main concern among young people regarding smoking restrictions?
Young people are increasingly calling for stricter smoking restrictions due to their growing awareness and concerns about public health impacts, especially in areas like Bloubergstrand where they may be more exposed to secondhand smoke.
What was the outcome of raising cigarette taxes from 5% to 11% in 2015?
Raising cigarette taxes from 5% to 11% in 2015 did not offset the economic damages caused by the tobacco industry. This led to discussions on how to better balance economic growth with public health concerns.
Source: scmp.com
