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    Subo: Maintaining High Tariffs Is Not A Good Policy.

    2011/6/24 9:13:00 78

    Customs Import Mission Tariff

      

    Ministry of Commerce

    Last week it publicly stated that it would further lower import tariffs, including tariffs on medium and high grade goods, and stressed that there was a consensus among various departments.

    But on the 22 day, relevant officials of the Ministry of Finance denied this statement, saying that they had not heard that the middle and high-end consumer goods should be adjusted.

    Import duties

    "


    Over the years, there has been a new generation of online shopping.

    industry

    It means buying goods abroad and sending them to the country. Business is quite hot.

    Nowadays, many people go abroad to buy goods and bring them back to the country.

    This phenomenon is due to the fact that the price of imported goods at home is much higher than that of foreign countries, even higher than that of Hongkong.

    According to the results of recent surveys by the Ministry of Commerce, watches, clothing, liquor and other 20 brands of high-end consumer goods, the domestic market price is 51% higher than the United States, 72% higher than France.


    Domestic prices are higher than foreign countries, which will inevitably lead to the pfer of consumption to foreign countries. Several sets of data can illustrate the extent of this phenomenon: from the beginning of February 2010 to the end of March 2011, the total consumption of China's luxury goods market was 10 billion 700 million US dollars, while in the same period, the total amount of luxury goods consumed by Chinese people in the European market amounted to nearly US $50 billion. By the end of 2010, China's top consumer goods accounted for 15% of the total global consumption, while domestic luxury consumption accounted for only 5.5% of the global consumption.

    Overseas consumption caused a great loss of tax revenue. According to Wang Jianlin, vice chairman of the National Federation of industry and commerce, the annual tax revenue is more than ten billion yuan.


    Will tariffs be reduced? I am afraid it is difficult to stand on the position of the Ministry of finance.

    According to the relevant data of the Ministry of finance, the value added tax and consumption tax of imported goods amounted to nearly 1 trillion and 50 billion yuan in 2010, and the customs duty was about 202700000000 yuan. The two share accounted for 29.5% of the central fiscal revenue.

    This is probably the reason why the position of the Ministry of Finance and the Ministry of commerce is inconsistent.


    In the case of a country's tariff policy, in addition to increasing the national tax, a more important purpose is to restrict imports, protect its industrial development, and encourage consumers to purchase domestic goods to stimulate domestic demand.

    High tariffs will normally be imposed on those goods that are not urgently needed by the state.

    But facts show that, with the increasing frequency of international exchanges, the effect of using tariffs alone to stop imports is not very good.

    If we simply analyze a product and impose a high tariff, it seems that price increases will curb domestic consumer demand and stimulate consumption of similar products in China, but if combined, the effect may not be so.


    It can be counted as an account.

    A domestic consumer, he has 10 thousand yuan for consumption, the plan is to use 6000 yuan to purchase imported goods, and 4000 yuan to buy domestic goods, because the import goods to pay a high tariff, this tariff is actually borne by consumers. In this purchase of imported goods 6000 yuan, including a tariff of 2000 yuan; that is to say, this 10000 yuan, has 2000 yuan to the state, if the state does not impose this tariff, he will be more than 2000 yuan can be consumed, assuming that he has a preference for imported goods is given, then this 2000 yuan can be used to buy domestic goods.

    So we can see that the final economic effect is: after the import tariff is imposed, 2000 yuan is taken away by the state; if the tariff is not imposed, the 2000 yuan will buy domestic goods into the domestic enterprises.

    We know that in general, the use of the 2000 yuan by the enterprise will have a higher economic benefit than the control of the state. Although the national tax increases by 2000 yuan, if the enterprise uses this fund to use the money for the economic cycle, it will pay the tax accordingly. In the long run, the tax revenue of the state will not necessarily decrease.

    For consumers, an extra 2000 yuan is spent on consumption, not only increasing their own welfare, but also stimulating domestic demand.

    Therefore, combined with high tariffs, the effect of protecting the development of local industries and stimulating domestic demand may be the opposite.


    For a country, the appropriate foreign trade policy is to achieve a certain amount of foreign trade surplus.

    Over the past few years, China's imports and exports have generated huge surpluses every year. Now our foreign exchange reserves exceed US $3 trillion. Under the current settlement system, the central bank is forced to invest a large amount of basic currency for foreign exchange settlement, resulting in a flood of liquidity and pushing up domestic prices and housing prices.

    Therefore, from the national macro level, it is necessary to vigorously encourage imports to balance international trade.

    Now there are a large number of wealthy strata in China. They have the need to upgrade their consumption. If the state reduces tariffs, on the one hand, it will increase imports to meet the consumption needs of domestic residents, save domestic resources from excessive use, and help to improve the trade structure.

    Therefore, to sum up, the Ministry of finance should really consider the necessity of reducing tariffs.

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