Workers dump counterfeit cigarettes at an incineration power plant in Xuchang, Central China's Henan province, March 13, 2015. [Photo/IC]

China raised the consumption tax on cigarettes from five percent to 11 percent, announced the Ministry of Finance in a statement on Friday.

Each cigarette will be taxed an additional 0.005 yuan during the wholesale process, effective from May 10, said the statement.

The higher rate is expected to bring in an additional 20 billion yuan ($3.2 billion) in taxes this year compared to 2014, reported Bloomberg, citing a person familiar with the matter.

The move came amid similar bills proposed in the US, as research showed that a tax hike would lead to lower cigarette consumption.