What is the function of taxation?
1. Institutional Finance Bureau: Taxation is a distribution method in which government departments participate in social distribution and concentrate a part of surplus products (whether by monetary means or physical means) by virtue of the coercive power of the state. The total revenue of national finance is the most important responsibility of the original ecology of taxation;
2. Regulate the economy: government departments participating in social distribution with the compulsory force of the state will change the market share of social group companies and their team members in the distribution of gross national product, reduce the disposable income of users and have an impact on the social industrial structure. Government departments have the right place to guide social and economic activities, so as to effectively adjust the social industrial structure;
3. Supervise the economy: pay attention to tax inspection, grasp the situation, find problems, supervise taxpayers to pay taxes according to law, supervise the orientation of social and economic activities, and maintain the discipline of social daily life.
Why should the cigarette tax be increased?
On the one hand, raising tobacco tax aims at reducing the number of smokers in China and protecting their health; On the other hand, it has also increased the country's fiscal revenue, so that the country can have sufficient funds for national defense construction. Compared with foreign countries, the tobacco tax paid by domestic tobacco companies is not very high in China. Moreover, the harm of tobacco to human body is very serious, but most smokers still can't control themselves, and the threat to life and health is more serious, so they will raise prices and increase negative taxes to reduce the proportion of smokers.
The Application of Tobacco Tax in China
Reducing smokers' health problems will reduce taxpayers' tax payment, and the state's financial support for hospital medical equipment and other projects will also be reduced, among which Medicaid and other projects will be used to take care of the health problems caused by smokers. The Centers for Disease Control and Prevention pointed out that although the tobacco industry can bring the benefits of tobacco tax to the country, the health problems brought by tobacco to users far exceed the benefits brought by tobacco tax.