The fund for investment in planting and processing of tobacco raw materials is set up for development of tobacco raw material areas, raising of cigarette product quality, thus meeting the domestic and overseas markets' demands, gradually reducing import ratio and rapidly increasing the volume of export tobacco raw materials.

State companies and joint-stock companies with over 50% of their charter capital held by the State may deduct 1-5% of purchase price of tobacco raw materials they sell to set up funds for investment in tobacco planting under the planning approved by the Prime Minister.

This Circular specifies the sources for formation of tobacco raw material investment funds, use purposes, accounting and settlement of funds, and takes effect 15 days after its publication in the Official Gazette. Other stipulations contrary to this Circular are annulled.- (Summary)