Table 1 Cigarette Classification and Profit Margins
Allocation price per pack | Grade | Excise Tax Rate at producer level | Allocation-wholesale margin | Wholesale-retail margin | ||||
|---|---|---|---|---|---|---|---|---|
After 2009 | Before 2009 | After 2009 | Before 2009 | After 2009 | Before 2009 | After 2009 | Before 2009 | |
≥10 Yuan | A | A | 56% | 45% | 46% | 47% | 10% | 10% |
≥7 Yuan and < 10 Yuan | A | A | 56% | 45% | 33.33% | 43% | 10% | 10% |
≥5 Yuan and < 7 Yuan | B | A | 36% | 45% | 33.33% | 43% | 10% | 10% |
≥3 Yuan and < 5 Yuan | B | B | 36% | 30% | 33.33% | 38% | 10% | 10% |
≥1.65 Yuan and < 3 Yuan | B | B | 36% | 30% | 25% | 28% | 10% | 10% |
<1.65 Yuan | B | B | 36% | 30% | 17.65% | 18% | 10% | 10% |