The era of electronic cigarette consumption tax is finally coming!

On October 25, the Ministry of Finance, the General Administration of Customs, and the General Administration of Taxation jointly issued the "Announcement on the Consumption Tax of Electronic Cigarettes" (hereinafter referred to as the "Announcement"), which will be implemented from November 1, 2022. The "Announcement" stipulates that electronic cigarettes are calculated to calculate taxes from the price rate. The tax rate of the production (import) link is 36%, and the tax rate of the wholesale link is 11%.

After electronic cigarette management measures and national standards, taxation issues that have attracted much attention from all walks of life have also been settled, and the future of the industry has become clearer.

Electronic cigarette consumption tax is enabled

"After this policy was introduced, the taxation of electronic cigarettes can also be regarded as' boots' landing '."

Zheng Rong, director of the World Health Organization Tobacco Control and Economic Policy Cooperation Center, and professor at the University of Foreign Economic and Trade, has been paying attention to the electronic cigarette industry for a long time. When accepting Tianmu Journalists, she said that domestic consumption tax on electronic cigarettes has been expected to be in the market. "Previously, the" Administrative Measures for Electronic Cigarettes "had recognized the electronic cigarettes as tobacco products, and the tax treatment was reasonable to see cigarettes."

In response to the consumption tax of the electronic cigarettes, the Ministry of Finance stated that it is to improve the consumption tax system, maintain fair and unified tax system, and better play the role of consumption tax to guide health consumption.

In terms of taxation prices, in the face of different situations, the "Announcement" clearly clarifies that taxpayers produce and wholesale electronic cigarettes shall be calculated based on the sales and wholesale electronic cigarette sales. The taxpayer of the electronic cigarette production section sells electronic cigarettes by agent sales, and taxes are calculated based on the sales of dealers (agents) to electronic cigarette wholesale companies.

Tianmu reporters saw that the consumption tax of electronic cigarettes was taxed by reference to cigarette cigarettes, but it did not levy taxes.

"The previous cigarettes can be calculated according to the amount of tax, which can be calculated, which is relatively convenient. The cigarette bullets of electronic cigarettes can be large or small, and the content of nicotine is different. It was the reason for the tax levy of the cigarette cigarettes this time, and there was no reason for the amount of taxation. "Zheng Rong said.

Zheng Rong said that the clear view of the WHO is that electronic cigarettes are harmful, and the consumption tax of electronic cigarettes also plays a role in "banning". In addition, the collection of electronic cigarette consumption taxes is also an international trend.

The China -Thailand Securities Research Report believes that the vast majority of countries have not prohibited the production and sales of electronic cigarettes. Instead, they will control the negative externality of electronic cigarettes by levying consumption taxes.

Some areas (such as some states in the United States) are taxed on the open/closed system electronic cigarette area, and the total taxation method is adopted to implement a certain proportion of the various equipment and tobacco oil of the open electronic cigarettes. To cigarette e -cigarettes (pre -filled in smoke bombs) or smoke bombs to be calculated from the amount of tax. There are also some countries and regions whether to tax e -cigarette oil to impose taxes of nicotine, and strengthen the level of electronic cigarette regulation.

Endlessness, the industry's certainty increases

In the past two years, the strict regulatory trend of electronic cigarettes has become visible to the naked eye.

Before March 2021, the electronic cigarette industry was in a blank area. Since then, electronic cigarettes have been clearly incorporated into the monopoly system with reference to cigarette supervision.

Subsequently, the two most important regulatory documents in the industry, "Administrative Measures for Electronic Cigarettes" and the National Standard Plan for Electronic Cigarettes, were successively introduced, and came into effect on May 1 and October 1 this year. Fruit flavored smoke bullets disappear, and the new national standard products with tobacco flavors, and a single brand of electronic cigarette experience stores or specialty stores does not exist.

In addition, the industry shuffle effect is also obvious. Tianmu reporters observed that the busy scene of many electronic cigarettes in the past is no longer, and even many stores have closed down.

"After the electronic cigarette consumption tax is levied, the price will definitely rise, and the corresponding sales volume will decline." Zheng Rong believes that although the electronic cigarette group is not as sensitive to the price as the cigarette group, the smoking group will also decrease.

Tianmu Journalists consulted related electronic cigarette retailers. The other party said that the current price of goods has increased by 20%, and the limitedness of the taxation policy and supply will rise again.

In addition, Zheng Rong said that as the electronic cigarettes were included in the comprehensive supervision of the taxation department, the industry's future certainty increased in the future, and it was also conducive to its long -term development.

On October 26, the concept of e -cigarette concepts of Hong Kong stocks rose collectively. As of the closing, Simo International (06969.HK) rose 14.43%, once in the morning by more than 20%; (03318.HK) increased by 6.36%; Huabao International (Huabao International ( 00336.HK) rose 5.82%.

In addition, on October 26, the fog core technology (RLX.US), which has fallen for more than a year, has also risen, as of the closing of 14%as of the closing. A -shares -related concept stock Shunyu (002565.SZ) daily limit; Jiyou (603429.SH), Jinjia (002191.SZ), Huabao (300741.SZ) have risen by more than 4%.

Guojin Securities Research Report stated that after the consumption tax was landed, the policy uncertainty in the domestic market has basically been eliminated, and the electronic cigarette industry has entered a new stage of development. And from the current channel feedback, the domestic market is welcoming the dawn. With the increasing number of new national standard products in the trial, the products are gradually iterating, and some regional feedback will improve sales since October. With the gradual digestion of fruit -flavored products in the hands of consumers, electronic cigarette business revenue based on Simo International, which is dominated by Simo International, or ushered in quarterly improvement on the basis of the fourth quarter of this year.