June 20 (Bloomberg) -- China raised tax on cigarette cartons costing 70 yuan ($10.24) or more to 56 percent from 45 percent to increase revenue, China Tax News reported, citing the government.

The duty on lower-priced cigarettes will rise to 36 percent from 30 percent, according to the newspaper report, posted on the State Administration of Taxation’s Web site yesterday. The levy on cigars will rise to 36 percent from 25 percent, it said.

Cigarette wholesalers will also be subject to a new 5 percent new, the newspaper said, citing a circular from the Ministry of Finance and the tax agency.

The changes take effect starting May 1, according to the periodical affiliated with the tax administration.

--Zhang Dingmin. Editors: Josh Fellman

To contact the Bloomberg News staff for this story: Zhang Dingmin in Beijing at Dzhang14@bloomberg.net

Last Updated: June 20, 2009 04:47 EDT