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In China, the largest producer and consumer of tobacco, a recent tobacco tax adjustment has just been implemented and, if this tax increase passes through to retail prices, it is expected to reduce the number of smokers by 630,000 saving 210,000 lives, at a price elasticity of 0.15.32 Following the same model, a tax increase of 1RMB (or US$0.13) per pack of cigarettes is expected to increase the revenue accruable to the Chinese government by 129 billion RMB (US$17.2 billion), reduce consumption by 3.0 billion packs of cigarettes, reduce the number of smokers by 3.42 million, and save 1.14 million lives
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