A Number Of Ministries Have Reached A Consensus On The Delamination Of Luxury Tax.

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Recently, at the "world luxury" forum held in Beijing, officials and experts from ministries of Commerce, Ministry of finance, State Administration of Taxation and other ministries participated in the discussion.

Industry analysts believe that this may reflect the relevant departments have reached a consensus on this issue.

Following the rebuttal of the proposal by the Commerce Ministry spokesman Yao Jian in July 15th that the "luxury tax should be reduced", the issue of luxury tax has been debated between the two ministries.

Layered tax adjustment into consensus

The question of whether or not to lower the luxury tax is not decided separately by the Ministry of Commerce or a ministries of the Ministry of finance.

It is understood that the NDRC, the Ministry of Commerce, the Ministry of Finance and the State Administration of taxation are the principal members of the Customs Tariff Commission of the State Council, and the final tariff tariff committee is the State Council Tariff Commission.

However, the reduction of luxury tax has been recognized by many departments.

"When Vice President Xi Jinping met with the vice president of the United States, he announced that China's imports would reach US $8 trillion in the next five years. Last year, China's imports amounted to US $1 trillion and 400 billion. If we want to achieve this goal on this basis, there is only one way to reduce taxes."

Yang Xiaodong, director of the China Council for the promotion of international trade, said: "this is a clear signal for the state to reduce tariffs."

Zhao Ping, director of the Consumer Economics Research Department of the Ministry of Commerce, thinks that China has joined the WTO 10th anniversary. As a member of the world trade organization, China has fulfilled the WTO's request for tax cuts in China.

In terms of how to reduce the tariff of luxury goods, experts from many ministries agree that to solve the problem of luxury tax increase or decrease, we must first solve the problem of "what is luxury".

For a long time, there is no strict definition of "luxury" in our country.

Zhao Ping thinks, "luxury itself should be a dynamic concept. Bicycles were luxury even thirty or forty years ago.

At present, what we need to do is to categorization of commodities and define the boundaries of luxury goods.

Ouyang Kun, China's chief representative of the World Luxury Association, believes that the definition of "luxury" should be defined from three macroscopic aspects.

He believes that the definition of luxury goods based on different consumer groups can be a basis for government departments to levy taxes on luxury goods.

The product is divided into three levels: first, the highest level of luxury consumption is private aircraft, yachts, luxury cars, defined as class a luxury goods; the second category is brand name watches, jewelry, jewelry as the middle level, defined as B luxury goods; the third category, with high fashion, luggage cosmetics, perfume as the basic level, defined as C luxury goods.

After the division is clear, different luxury tax rates can be formulated according to different levels.

Ouyang Kun said.

"According to this division, the luxury tariff that has already been popularized should be lowered, but higher taxes should be levied on high-grade luxury goods tariffs. The main purpose is to regulate distribution."

Gong Hui, a foreign tax research office of the taxation department of the State Administration of Taxation, said.

At the "world luxury" forum, the Ministry of finance did not object to the hierarchical tax adjustment.

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The entanglement of the Ministry of Finance

On the issue of luxury tax, the Ministry of finance once stood on the opposite side of the Ministry of Commerce and questioned the "reduction of tariffs on luxury goods and the expansion of consumption".

In June 9, 2011, the World Luxury Association released the latest report in 2011: the total consumption of luxury goods in mainland China last year has reached 10 billion 700 million US dollars, accounting for 1/4 of the global share, while almost the same period, the total amount of luxury goods purchased by the Chinese people in the European market has nearly $50 billion, which is 4 times as much as the domestic market, resulting in serious consumption of luxury goods in China.

On June 15th, Yao Jian, a spokesman for the Ministry of Commerce, proposed that tariff adjustments should be made to middle and high grade consumer goods.

The fundamental starting point of the Ministry of commerce is to expand domestic consumption.

In this regard, many ministries and experts believe that the key point is whether the luxury tax will fall, and whether the price of luxury goods will drop?

Will it really benefit the people? "

Zhang Xuedan, director of the Tax Policy Research Office of the Financial Science Research Institute of the Ministry of finance, thinks that the tax reduction of luxury goods may not be encouraging consumption of luxury goods, because many rich people in China have the mentality of showing off their wealth. Even if the state reduces the luxury tax, businesses may not lower their prices.

"Lowering tariffs will not stimulate domestic demand, but fertilizer will flow to outsiders."

Analysts pointed out that the Ministry of finance is not necessarily concerned about stimulating domestic demand.

According to the data released by the Ministry of finance, the value added tax and consumption tax of imported goods amounted to nearly 1 trillion and 50 billion yuan last year, and the tariff rate was about 202700000000 yuan, and the two share accounted for 29.5% of the central fiscal revenue.

Gong Huiwen, a foreign tax research office of the tax bureau of the State Administration of Taxation, believes that lowering tariffs will not stimulate domestic demand, nor will it benefit ordinary people.

It is understood that the total import tax and consumption tax of Lancome perfume imports in China are 2.5%, while France needs 19.6%.

In total, Rolex watches import 47% of import and consumer taxes in China, compared with about 14.25% in the United States and 19.6% in France.

"If we reduce the tax they want to levy, compare the retail prices of different varieties in different countries, we can see that the price of many Chinese luxury goods is still higher than that of many countries, which is determined by the specific pricing mechanism of others."

Gong Hui said.

Gong believes that everyone has the right to choose different grades of consumer goods, but if a society and a group advocate high-end consumer goods, then there is a problem.

The macro policy of society should guide the consumption of residents correctly, so higher tariffs should be imposed on high-end luxury goods.