China has raised tax on tobacco in an effort to fund state spending and curb smoking, according to a report by AFP.

The tax on more expensive brands of cigarettes went up from 45 per cent to 56 per cent per packet, while the tax on cheaper tobacco saw an increase from 30 to 36 per cent, the administration said, the State Administration of Taxation said in a notice on its website. Tobacco wholesalers were also hit with a five per cent levy according to new tax rates that went into effect on 1 May but were announced over the weekend.
"Efforts to increase the tobacco tax and lift tobacco prices have proven the most effective in reducing smoking among smokers of all income levels," the China Daily quoted the Chinese Association of Tobacco Control.
China is the largest producer and consumer of cigarettes in the world with up to a million people dying of smoking-related diseases each year, the China Daily said. This figure could rise to up to three million by 2050, it added. (pi)