Reduction Of Luxury Goods Tariff &Nbsp, Alcohol, Tobacco, Cosmetics Or First

More than a year.

Ministry of Commerce spokesman Yao Jian said in June 15th that China would further reduce imports.

It is understood that as early as a year ago, the relevant departments of the Ministry of Commerce had drafted the "bill on import tariff adjustment of luxury goods" and submitted it to the State Council for approval. The motion involved luxury goods, including cosmetics, jewelry, clothing, bags, high-end watches and other imported commodities.

However, due to the fact that there are too many commodity categories and too many departments involved, the bill has been tossing between ministries and departments, and has not reached a final conclusion.

The people who participated in the motion told the "China Times" reporter: the import tax adjustment will not be taken as a step by step, the tariff reduction will be zero as the previous rumors have said, the basic reduction rate will be around 2%-15%, and the cosmetics and high-end liquor and tobacco varieties will go ahead. However, the specific scheme and implementation time must be based on the final policy promulgated by the Ministry of Commerce and the State Administration of taxation. "I believe the results will soon be coming."

The most direct effect of the import tax reduction is to leave the huge consumption of luxury goods that remain "large outside the home" at home.

Wang Yong, Secretary General of the brand China industry alliance, told reporters that appropriately reducing the relevant tax rates of cosmetics and high-end watches could increase imports of high-grade commodities for domestic demand, pform part of overseas consumption into domestic purchases, and expand the sales revenue of the domestic market.

Internal and external spreads

The price of domestic luxury goods is much higher than that of foreign countries.

After years of neglect, this fact has finally attracted the attention of decision-makers.

According to the Ministry of Commerce survey, 20 kinds of high-end consumer goods, such as watches, bags, clothing, wine and electronic products, are at the top of the market. The difference is: the mainland market is about 45% higher than Hongkong, 51% higher than the US, and 72% higher than that of France. Five

The main reason for the spread is the Levy of import duties.

Wang Yong told reporters that the import tariffs of luxury goods in China are generally between 15% and 25%, while others are as high as 50%, such as cosmetics and liquor. Besides, luxury stores also have various taxes and fees, such as customs inspection, shop inspection, value-added tax, business tax and consumption tax, which directly lead to the price of domestic luxury goods at least 1/3 higher than that of their origin. In order to avoid customs duties, Chinese people spend 200 billion yuan each year to buy luxury goods abroad.

Bain, a consultancy, released the 2010 survey of luxury goods in China, which showed that luxury goods suppliers took 68 billion 400 million yuan from the Chinese Pocket last year.

The most expensive luxury items are cosmetics, perfume and personal care products. Chinese people spend 16 billion 900 million yuan on these three items, and second of them are watches, which cost 15 billion 500 million yuan.

More importantly, a large proportion of these consumption takes place overseas.

Public figures show that in 2010, Chinese tourists spent about 1 billion pounds in the UK, or about 11 billion 200 million yuan.

A report released in June by the World Luxury Association even said that China is expected to become the world's largest luxury trade and consumption center in 2012, with total consumption expected to reach US $14 billion 600 million.

Therefore, Minister of Commerce Chen Deming repeatedly said in public that China will solve some luxury goods in the domestic sales price higher than overseas.

The Ministry of Commerce set up an agency to deal with it.

The billions of dollars of tax revenue lost each year seem to make the import tax adjustment of luxury goods become imminent this year.

According to the data monitoring report of China's e-commerce market in 2010, in 2010, the market scale of overseas purchasing amounted to 12 billion yuan, of which cosmetics and luxury goods were the majority. Even if the tax rate was calculated at 40%, the annual revenue loss would be as high as several billion yuan.

Therefore, the Ministry of Commerce began to study the reduction of import tariffs on luxury goods since last year.

Reporters interviewed learned that a year ago, the relevant departments of the Ministry of Commerce had already drawn up the "bill on import tariff adjustment of luxury goods", which was approved by the State Council. The categories of luxury goods included cosmetics, jewellery, clothing, bags, high-end watches and other imported commodities, which also attracted the attention and affirmation of the state.

However, due to the fact that there are too many commodity categories and too many departments involved, the bill has been tossing between ministries and commissions, and there has been no final conclusion on the type and extent of adjustment.

After more than a year of coordination, the first ice breaking products this year will be higher duty cosmetics, high-end liquor and so on.

According to the sources, according to the results of the Ministry of Commerce, some industries hope to adjust the pace directly to zero, but such a plan may not be adopted. The Ministry of Commerce and the relevant ministries and commissions will set the final adjustment between 2%-15%.

The most direct result of the reduction in the import tax on luxury goods is the huge consumption of luxury goods left at home to become domestic demand.

By reducing tariffs to promote domestic demand, Yao Jian also said that recently, the Ministry of Commerce has adjusted the internal institutions, such as increasing the content of consumption in the name and functions of the original market operation Department. At the same time, it has increased the role of e-commerce in expanding consumption, and renamed the original information technology department as the Department of e-commerce and information technology.

In addition, it has further strengthened the integration of the two markets at home and abroad, combined the function of the former service trade department with the development of the domestic service industry, and renamed the service trade and service industry development division, hoping to promote the development of the domestic service industry by means of channels, talents and management experience of international trade in services.

In this regard, Yan Qi, a researcher at the Institute of foreign economic research, said: "if the policy of reducing the luxury goods tariff can be implemented, it can not only leave a part of the luxury goods at home, but also lead to the development of the surrounding industries and supporting business."

Jiang Zengwei, Vice Minister of Commerce, also said that appropriately reducing the tax rate of cosmetics, high-end watches and other commodities will help to convert part of overseas consumption into domestic purchase and expand sales revenue in the domestic market.