Laws of the People's Republic of China

the State Council

Order of the State Council of People's Republic of China

No. 464

The Interim Regulatins of the People's Republic of China on Tobacco Leaf Tax is hereby promulgated and shall enter into effect as of the day of promulgation.

Premier of the State Council, Wen Jiabao

April 28, 2006

Interim Regulations of the People's Republic of China on Tobacco Leaf Tax

Article 1

In the territory of the People's Republic of China, an entity that engages in the purchase of tobacco leaves shall be a taxpayer of the tobacco leaf tax, which shall pay the tobacco leaf tax in the light of the Regulations.

Article 2

The term "tobacco leaves" mentioned in the Regulations means aired tobacco leaves and baked tobacco leaves.

Article 3

The tobacco leaf tax payable shall be calculated on the ground of the sum as generated from tobacco leaf purchases conducted by taxpayers as well as the tax rate prescribed in Article 4 of the Regulations. The formula of calculating the tobacco leaf tax payable is:

The amount of tax payable £½ Sum as generated from tobacco leaf purchase ¡Á Tax rate

The amount of tax payable shall be calculated in Renminbi.

Article 4

Tobacco leaf tax shall be levied at the proportional rate of 20%.

The adjustment of tax rate for tobacco leaves, if any, shall be determined by the State Council.

Article 5

The tobacco leaf tax shall be levied by local tax authorities.

Article 6

If a taxpayer purchases tobacco leaves in one place, he shall submit tax returns to the local administrative tax authority.

Article 7

The time when the obligation arises for a taxpayer to pay the tobacco leaf tax shall be the very day when he conducts the corresponding tobacco leaf purchase.

Article 8

When the day that the obligation arises for him to pay the tobacco leaf tax, a taxpayer shall, within 30 days, submit a tax return . The specific time limit for paying the tax shall be determined by the administrative tax authority.

Article 9

The administration for the levy of the tobacco leaf tax shall be implemented in accordance with the relevant provisions of the Law of the People's Republic of China on the Administration of Tax Collection as well as the Regulations.

Article 10

The present Regulation shall enter into effect as of the day of promulgation.