Factory price of different grades of cigarettes in 2006 in China
| Grades of cigarettes | Price per carton before VAT (¥) | Ad valorem tax rate |
| 1 | 50> | 45% |
| 2 | 30–49 | 30% |
| 3 | 15–30 | 30% |
| 4 | 10–14 | 30% |
| 5 | <10 | 30% |
Grades 4 and 5 are defined as ‘low-level cigarettes’, grades 1 and 2 are defined as ‘high-level cigarettes’ and grade 3 is defined as ‘medium-level cigarettes’.
VAT, value added tax.