17 percentage points. According to China Tobacco Network, tobacco belongs to goods sales, and the VAT rate is 17%. Tobacco consumption tax rate is 45% for Class A cigarettes, 40% for Class B cigarettes, 40% for cigars and 30% for cut tobacco. Article 2 of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC), the tax rate of taxpayers selling goods, labor services, tangible movable property leasing services or imported goods is 17%, unless otherwise stipulated in items 2, 4 and 5 of this article.