(Yicai Global) Dec. 28 -- The Standing Committee of the 12th National People's Congress passed drafts of the tobacco leaf tax law and ship tonnage tax law in its 31st session yesterday and they will enter into force on July 1, 2018, China Internet Information Center reported.
Pursuant to the tobacco leaf tax law, those that purchase flue- or air-cured tobacco leaves are taxpayers under the Tobacco Monopoly Law in China. The tobacco leaf tax rate will be 20 percent.
The State Council had previously formed regulations on the tobacco leaf tax and ship tonnage tax in accordance with the NPC's mandate.
The Standing Committee's move aims to upgrade the original regulations to laws without involving any tax reform or making major adjustments to the original legal systems in force, said Wang Ruihe, director of Legislative Affairs Commission's Legislative Planning Office.
The tobacco leaf tax and ship tonnage tax law generated respective revenues of CNY13.1 billion (USD2 billion) and CNY4.8 billion last year, accounting for a small proportion of China's national revenue.