Key practical points:
• The taxpayer is the entity purchasing tobacco leaf within China.
• The rate is a flat 20% of the total purchase amount of tobacco leaf.
• The tax is paid to the tax authority at the place of purchase.
• It is a local tax intended to support tobacco-growing regions.
• It replaces the earlier provisional tobacco-leaf tax regulation by elevating it to a law.
💰 Tax
Tobacco Leaf Tax Law · Yalla China
中华人民共和国烟叶税法 / Tobacco Leaf Tax Law
Enacted: 2017-12-27 ✅ Effective: 2018-07-01
📝 Overview
A tax on the purchase of tobacco leaf (flue-cured or air/sun-cured) in China, paid by the purchaser (usually tobacco companies). The rate is 20% of the purchase value; the provisional regulations were replaced by this law in 2018.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
This tax is highly specialised and mainly concerns entities that buy tobacco leaf from farmers. If your business is in the tobacco supply chain, factor the 20% into your purchase cost. General orientation, not legal advice.
📎 Official source
npc.gov.cn
🕒 Updated: 16 March 2026