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    Luxury Import Tax Or 2%-15%&Nbsp, Domestic Luxury Consumption Will Usher In An Outbreak Period.

    2011/6/20 10:05:00 88

    Import Tax Luxury Business Department

      

    Rumor "luxury"

    Import duties

    The news of "downgrading" was finally confirmed.


    A spokesman for the Ministry of Commerce said recently that China will further lower import tariffs, including some medium and high grade commodities.

    tariff

    It has been revealed that the import tax adjustment of luxury goods will not be reduced to zero as a result of a one-step tariff reduction as previously reported by the outside world. The basic reduction will be about 2%-15%. Cosmetics and high-end liquor and tobacco varieties will go ahead; however, the specific plan and implementation time must be based on the final policy promulgated by the Ministry of Commerce and the State Administration of taxation. "I believe there will be results soon."


    Under the stimulation of this good news, domestic luxury consumption will usher in an outbreak period.

    Bain & amp; Bain (Company & amp; Co.) in a research report predicted that the demand for luxury goods in Chinese consumers will show a significant growth trend, which is expected to increase by 25% this year and sales by 11 billion 500 million euros.


      

    tax rate

    Too high leads to big difference.


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

    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


    In response, Tong Minqiang, general manager of Hangzhou Tower, said that the main reason for the spread was the excessive import tariffs.

    At present, 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).


    In addition, luxury stores also have customs inspection, entry testing, value-added tax, business tax, consumption tax and other taxes and fees, which directly lead to domestic luxury goods at least 1/3 higher than their origin.


    Overseas shopping is 4 times more than domestic.


    In order to "escape tariffs", Chinese consumers have been looking abroad, so outbound shopping and overseas purchasing have been very popular in recent years.

    According to incomplete statistics, Chinese people spend 200 billion yuan a year on luxury goods abroad.


    According to a recent report released by the World Luxury Association, the total consumption of China's luxury goods market has reached US $10 billion 700 million from the beginning of February 2010 to the end of March 2011, while almost all Chinese purchases of luxury goods in the European market nearly total 50 billion US dollars over the same period, which is 4 times the domestic market.


    According to the "2010 China e-commerce market data monitoring report", in 2010, the market scale of overseas purchasing alone reached 12 billion yuan, of which cosmetics and luxury goods were the majority. Even though the tax rate was 40%, the annual revenue loss was as high as several billion yuan.

    "It is obvious that China's luxury consumption has shifted to a serious extent."

    Yang Zude, a senior businessman in Hangzhou, sighed.


    Influence


    Shopping mall or shopping tide


    "Once the import tariff is lowered, it is undoubtedly a good thing for Hangzhou business and consumers."

    Yang Zude said that as a provincial capital city of private economy, Hangzhou is becoming an emerging market for luxury consumption.

    Data show that Hangzhou has surpassed Guangzhou to become a truly luxury third city.


    Yang Zude believes that the most direct effect of the import tax reduction is to leave the huge consumption of luxury goods that remain "large outside the home" in the domestic market, and the beneficiaries are the first ones in China.

    Take the cosmetics that may reduce import duties as an example, it is the major luxury goods sold by the major shopping malls.


    Outbound shopping has little impact in the near future.


    Of course, the ultimate beneficiaries of the reduction in the import tax on luxury goods are domestic consumers.

    Last month, Mr. Chen and his brother, who worked on the stadium road, played a trip to Xin Ma Tai. Two people bought a radar watch in Singapore. The price was RMB 6700 yuan and more than 9000 yuan, and the tax rebate was 5% at the airport.


    But the price of these two watches in China is 9000 yuan and 15800 yuan respectively, and the price that Mr. Chen bought in Singapore is nearly 10000 yuan cheaper than that in China.

    "This time we went out, tickets and accommodation cost 6000 yuan per person, basically from two tables" earned "back.

    Mr. Chen said.


    "The reduction of import tariffs on luxury goods will not bring too much impact on outbound shopping in the short term."

    Chen Xinan, general manager of the China Tourism Marketing Center, analyzed the time, type and specific extent of the import tariff adjustment.

    And some consumers choose to go shopping is not determined by tariffs, but want to go to Europe to buy the concept of origin and quality, and price has nothing to do with it.

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