There Is A Consensus On Reducing Taxes For Luxury Goods &Nbsp; The Expansion Of Import Policy Focuses On Equipment.

The time for the national expansion of import work conference has not yet been determined.

This conference is considered to be the highlight of the Ministry of Commerce's expansion of import strategy. With the convening of the conference, the decision-making level may continue to introduce supporting policies for promoting imports.

Close to the Ministry of Commerce, the news personage introduced in September 19th, about how to expand imports, specifically how to reduce taxes, the Ministry of Commerce's expansion import documents have been delivered to the decision-making level, and the Ministry of finance's opposition to luxury tax reduction has also been placed before the decision-making level.

People close to the Ministry of finance also revealed that whether or not the luxury goods should be subject to tax reduction all parties agreed that the commodities that are currently taxed in the import chain of luxury goods should be re classified and classified.

But he also acknowledged that the specific rules of operation will be a long process.

Emphasis should be placed on importing equipment and technical equipment.

At present, the domestic tax category of luxury goods needs to be redefined, and more detailed classification and classification should be started.

According to the sources who participated in the policy demonstration of import promotion, according to the importance ranking, the package of export promotion policies will mainly cover three levels: first, the import of equipment and technology equipment, including the reduction of tariffs on this category of commodities, and priority loans or loan interest discount to the import of advanced technology and equipment in key industries, and then the reduction of the import tariff rate of resource products. Finally, it is to promote the import tax reduction of consumer goods, which are still classified as luxury goods, such as cosmetics.

The source said that the initial promotion policy argument had divergent views on the focus of the policy.

But finally, the internal discussions of the Ministry of Commerce have finally agreed that the focus should be placed on the latter.

"From the ranking of the importance of policies, the reduction of tax on imported consumer goods will only be a small part of promoting imports."

He said.

A few of the respondents mentioned that the above three policy recommendations for promoting imports were basically agreed on among the two ministries, and the Ministry of Finance had no objection. The focus of the dispute was on third items.

Those close to the Ministry of Finance said there were two reasons why the Ministry of Finance opposed the tax reduction.

First, there are many types of commodities that need to be reduced taxes, and the overall tax reduction space is limited. Under such circumstances, luxury goods should not be reduced taxes or should be the focus of tax reduction. The tax reduction of luxury goods is beneficial to the circulation enterprises. In comparison, those products that are designed to develop, produce, circulate and consume all within the territory should receive tax reduction support.

Two, the import tax on luxury goods imported by this round of expansion will be reduced. The import tariff will only be adjusted in practice, while import consumption tax and import value-added tax will not be adjusted.

It is estimated that the tax rate of import links is very limited. Compared with the total tax rebates for overseas duty-free shops, China's luxury goods still have no advantages. It is hard to hope to achieve overseas consumption reversion through this adjustment.

Bruno Lanna, a senior partner of Bain, told the newspaper that the price of luxury goods in China is generally higher than that in the European and American markets because of China's higher import tariffs and consumption tax.

He reminded that the rental and staff salaries in mainland China were generally lower than those in Hongkong, but the terminal retail prices were much higher than those in Hongkong.

Bain's report shows that 55% of China's luxury consumption of 156 billion yuan in 2009 occurred overseas.

Zhou Shijian, a senior researcher at the Sino US Relations Research Center at Tsinghua University, also reminded that many of the daily necessities included in the discussion of luxury goods are actually confusing. His personal hair dye cream is sold at 69 yuan in Beijing, and the price in Hongkong is 25 Hong Kong dollars, and the US price is only 3.5 dollars. He said that such commodities, which were included in the category of luxury tax in the 80s and 90s of last century, have entered the homes of ordinary people.

The Ministry of Commerce's attempt to promote daily consumer goods tax reduction is not a list of famous cars that the top rich people consume. It is such a consumer goods that should no longer be included in the category of luxury taxation.

However, the former close to the Ministry of Finance revealed that the current domestic luxury tax category needs to be redefined, and more detailed classification and classification should be started.

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The policy of expanding imports is suspended.

Tariff reduction and loan discount for new equipment imports are effective measures to expand imports.

According to the above analysis, the Ministry of Commerce has pushed for a series of measures to expand imports, including the reduction of tax on luxury goods and other consumer goods. There are basically three considerations: reducing trade surplus, starting circulation and not damaging domestic industries.

According to the central economic work conference and the National Conference on business affairs, one of the main tasks of foreign trade in 2011 is to pay equal attention to exports and imports, and to promote the balance of international payments.

In the case of many unstable factors in the external demand market, the "promotion port" instead of the "pressure export" has become the preferred path for China to reduce the trade surplus.

In the first half of this year, a package of policies to promote imports could be introduced. In fact, the intensity and speed of promoting the export policy were much lower than the previous market expectations. The national expansion Conference on imports, which was led by the Ministry of Commerce, the development and Reform Commission, the Ministry of Finance and the General Administration of customs, was originally scheduled to be held at the end of 4.

A foreign trade system in Guangdong province said that according to the notification received from the provinces, expanding imports would become an important starting point for foreign trade work in the future, and equal emphasis should be placed on exports.

At present, the import and export tariff policies, including moderate relaxation of foreign exchange control, have been gradually fulfilled. Import tariffs on gasoline, diesel and other resource products have also been substantially reduced in July 1st.

Those who participated in the Policy Argumentation said that tariff reduction and loan discount for high-tech equipment imports were effective measures to expand imports.

The reporter was informed that the Ministry of Commerce held a forum on expanding imports in Xinjiang at the end of last month. At the end of this month, enterprises will continue to hold talks on expanding imports in Shanghai. The report will be submitted to the State Council.

Those people said that this is actually creating momentum for expanding imports.

He warned that if the subsequent trade surplus worsens, it may stimulate the decision-making level as soon as possible to decide to start the expansion of import measures in an all-round way.

In 1-8 months, China achieved a trade surplus of US $92 billion 700 million, down 10% from the same period last year.

However, the foreign trade system originally hoped that the annual surplus could be controlled at around us $100 billion.