The Ministry of Finance has approved a tax on vaping products which will go into effect on November 1st.
The Chinese industry had operated within a grey area for years, then in the last couple of years a movement towards regulating started.
As part of this trend, the Ministry of Finance has just announced a tax rate of 36% on the production or import of vapes and an 11% tax on the wholesale distribution of the products.
Meanwhile, a new bill which went into effect earlier this year, will ban 122 vape flavours as proposed by the State Tobacco Monopoly Administration (STMA), including numerous fruit and alcohol flavours. The new measure also amends the country’s tobacco monopoly, extending it to e-cigarettes, which forces local businesses to register with the tobacco authority.
Moreover local manufacturers must now obtain an additional licence to prove they are in possession of sufficient funds for production, and an adequate facility and equipment that meet the set standards. Subsequently the STMA has just published a guidance outlining the process for Chinese e-cigarette manufacturers to obtain the required manufacturer licence.
Diane Caruana – Vaping Post – 2022-11-11.
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