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In addition to the administrative disarrangement,[link widoczny dla zalogowanych],[link widoczny dla zalogowanych], the tobacco-control campaign lacks legal support to eliminate the tricky advertisements and promotional events held by tobacco companies.
There are no laws that prohibit public smoking or tobacco advertisements. Furthermore, tobacco companies began using charities as promotional tools. According to the Chinese Association on Tobacco Control, 52 tobacco companies had held 79 charity affairs and promotional events from September to December 2009. In 2010, China National Tobacco Corp. donated 10 million yuan to establish the Golden Leaves Foundation.
Even more perverse,[link widoczny dla zalogowanych],[link widoczny dla zalogowanych], Chinese cigarette packaging usually features pleasant depictions of pandas or majestic shots of the Great Wall, instead of printing drastic warnings coupled with vivid images that show the potentially horrific consequences of smoking. The required warning occupies only a small space with the simple “smoking is harmful to your health.”
Low taxation makes cigarettes very affordable, and although China has levied five percent more taxation on tobacco wholesales since 2009, the price remains low compared with other countries. For example, a package of Marlboro costs $2.04 in China while it’s $9.39 in Singapore and $11.48 in Norway.
Experts like Yang and Wu believe tobacco control should be listed as a strategic campaign in the country’s 12th Five Year Plan and should draw attention from the State Council, which can separate the tobacco enterprises from the government management. According to the “Tobacco Control and China’s Future,” the next 20 years offer a good opportunity for China to regulate its tobacco control policies.
“It will be a touchstone to test the government’s ability to transform the health-hazardous economy into health-friendly economy,[link widoczny dla zalogowanych],” Yang said. The cigarette sales drop-off impacts established chains like Wilson Farms as well as single-store “mom-and-pop” operations, Calvin said. “It’s heartbreaking. It’s through no fault of their own. It’s not that they don’t run a good business. They do.”
Erik Kriss, a spokesman for the state Division of the Budget,[link widoczny dla zalogowanych], said he is not surprised to hear a retailer say its cigarette sales have fallen since the tax hike. Budget officials had projected sales of cigarettes would drop 22 percent as a result of the tax increase, he said. One reason for the hike,[link widoczny dla zalogowanych],[link widoczny dla zalogowanych], Kriss said, was for the state to create a “disincentive” for people to smoke, by making the products more expensive.
The bigger-picture goal is to make people healthier and reduce related health care costs, he said. “One of the objectives was to get fewer people to smoke,” Kriss said. Plus, cigarette tax revenues support Health Care Reform Act-funded programs. Even with the tax hike prompting some to quit or buy their products elsewhere, the state expects to hit its target for cigarette tax collections by the time the current fiscal year ends in 2011, Kriss said.
Convenience store operators say they can’t afford the tax hike’s impact. The NYACS has called for Gov. David A. Paterson to suspend the $1.60 per pack tax increase until tax collection begins on Native American sales to non-Native Americans. A spokesman for the governor said that suggestion has been rejected, noting that Paterson cannot suspend the law.