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Why is the United States cigarettes in China cheaper than USA

Find cheaper US products sold in China is theoretically not easy. Most American products are brand and quality advantages, plus shipping costs and customs duties, how can sell it cheaper in China? In fact, to find cheaper US products sold in China a little too hard. cigarette! Marlboro various sites in the country, according to a general introduction seems to be between 15 per pack, or 90-200 yuan each.

Author of the southern US state of Georgia before retail stores sold $ 300 a dozen, and now is roughly $ 40 up and down. Then the price is indeed higher than domestic. If you are in New York City, a pack of Marlboro prices even higher on a few dollars. Why is this?

Cigarette sales in the United States are required to impose federal and state cigarette tax. Federal tax is currently $ 1.01 per pack. State cigarette tax from $ 0.17 to $ 4.35, Missouri, New York, with an average it is about $ 1.46. Some cities also levy other taxes on cigarettes, such as New York City, will further tax levy of $ 1 to $ 4.35 in New York on the basis of. So the price of a pack of cigarettes in New York City includes a $ 6.36 tax. Such added to the price of natural cheap.

World Health Organization estimates the US cigarette tax rate is approximately 45%, China is 41%. European countries will have to be much higher, such as the French cigarette tax is 80%, the UK 77%, Germany 74%. Thailand, Bangladesh and other developing countries have about 67%. Let behind a lot. Some readers might say, is it not a good thing with low tax rates, tax increases What are the benefits? Professor Hu, University of California, Berkeley and West China Medical University, Professor Mao has worked like study found that increasing the tobacco tax one yuan per pack can save more than 300 million lives and created more than 235 billion yuan of government revenue. Hu, a professor at Georgetown University and recently Professor David Levy recent study published in the "British Medical Journal" found that if the Chinese tobacco taxes can be increased to 75% of the retail price, the smoking rate to 12.9 percent by 2050 can be lowered.

If China can execute all policies "Framework Convention on Tobacco Control", the 2050 smoking rates can be reduced by 40%, and can prevent the 12.8 million deaths due to smoking and 100 million 54 million lives. This is the increase in tobacco tax benefits.Tobacco tax increases are also supported by theoretical analysis of health economics. Smoking externalities (refer to hazards of smoking on non-smokers) is an important reason. Calculation of the US Centers for Disease Control and Prevention is a pack of cigarettes smoked per brought economic costs (including health costs and productivity losses) was $ 10.47. These health costs and productivity losses of a majority of smokers outside the main economic commitment. For example, productivity loss largely borne by the employer, which is the current owner of US support for smoke-free policies increasingly cause.