E-cig tax should be easy to implement, but will new rules affect Chinese market?

China’s new e-cigarette tax, implemented on 1st November with very little warning, should not prove too heavy an administrative burden, according to experts. But it remains unclear for now just how big an impact the tax and other new Chinese regulations brought in earlier this year will have on the domestic market.

The new tax requires owners of e-cigarette brands to be responsible for paying the 36% rate levied on tobacco products and distributors a tax of 11%. However, the new tax will apply solely to products sold in China, while exports are eligible for a full tax rebate.