China to ban tobacco ads by 2011

Beijing, Aug.11 (ANI): China will ban tobacco advertisements and promotion activities starting from January, 2011.

Beijing News and the China Daily quoted Xu Guihua, vice chairmen of the Chinese Association on Tobacco Control, as saying that the cost of advertisements and promotions will also no longer be able to be deducted from business income taxes of tobacco companies, the Ministry of Finance and the State Administration of Taxation announced Monday.

Previously, advertising expenditure could be deducted from business income taxes, giving companies an incentive to spend more on advertising.

Zhang Xueyan, vice director of the Price and Tax Research Office of the Ministry of Finance, said this was a necessary measure to help curb China's tobacco consumption. (ANI)