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    China'S High Tax System Leads To Luxury Consumption Outflow &Nbsp; The Tax Rate Is 4.17 Times That Of The US.

    2012/2/3 10:43:00 13

    Tax RateLuxury ConsumptionMarket Economy

    The World Luxury Association released the latest data. During the Spring Festival, Chinese people were overseas.

    Luxury goods

    Consumption totaled $7 billion 200 million, an increase of 28.57% over the previous year, much higher than the expected $5 billion 700 million a year ago, a record high.

    During the Spring Festival last year and the Spring Festival of the previous year, the amount of luxury goods consumed by Chinese people abroad was 5 billion 600 million US dollars and 4 billion 900 million US dollars respectively.


    Stimulating domestic demand in the country to revitalize China

    Economics

    Under the strategic background, a spring festival spent $7 billion 200 million of luxury goods on the "man field", which is a bad news.

    However, during the Spring Festival, the consumption of luxury goods shifted to US $7 billion 200 million, which is just a microcosm of the current shift in luxury consumption.

    According to the data released by the World Luxury Association in 2011, the consumption of Chinese abroad is 4 times that of the domestic market, and consumption is seriously shifting.


    A Chinese market research firm based in Shanghai estimates that Chinese tourists spend $54 billion abroad in 2010, while overseas travel in 2011 will continue to grow by 12% to 14%.

    EBay data show that since the opening of the website self purchase business, monthly turnover increased by 3 to 5 times.

    Some scholars predict that by 2012, the scale of overseas purchasing will reach 48 billion yuan.


    Voting with feet, highly free.

    market

    Under economic conditions, where to buy goods and consumption, when to choose what time to consume and what to buy is the freedom of consumers, and no administrative organ has the right to interfere.

    Therefore, we can not blame consumers for the shift of luxury goods consumption because they are not patriotic.

    So where is the problem?


    According to a survey conducted by the World Luxury Association for Chinese outbound consumers during the Spring Festival, 72% thought that the luxury price of going abroad to buy luxury goods has an advantage over the domestic market. 69% of the people believe that the luxury goods purchased abroad are more than the domestic ones, and the selection is large. 45% of them go abroad to buy luxury goods in order to enjoy genuine origin goods and local services.


    It can be seen that an important reason for the outward movement of luxury goods is that the prices of foreign consumer goods are lower than those of domestic consumer goods. Secondly, the supply of goods is ample and there is room for choice.

    In addition, the quality is better, and there are signs of origin, and consumers are relieved.

    It can be seen that buying luxury goods abroad is in line with the law of market economy.

    Therefore, in order to change the consumption situation of the consumption of luxury goods, and to spend tens of billions of dollars in the domestic market, we must start with lowering the price of domestic luxury goods, creating a better investment environment and operating environment, especially in reducing the price of luxury goods.


    In terms of consumer goods prices, we must talk about the current tax system.

    According to reports, a Swiss imported watch priced at 2700 yuan in the mainland will contain 17% VAT 392 yuan, 30% consumption tax 623 yuan and 11% customs duty 267 yuan.

    Comparing Chinese and American prices, Chinese scholars find that the price of Chinese exports to the United States is 50% cheaper than that of similar commodities in China.

    Scholars believe that China's value-added tax, consumption tax and business tax and other turnover taxes lead to high prices. The tax in Chinese products is higher than that in any developed country: 4.17 times the United States, 3.76 times that of Japan, and 2.33 times the 15 countries of the European Union.

    Therefore, reducing the tax cost of consumer goods is a choice to reduce the price of consumer goods.


    At the same time, market supervision should also be strengthened to prevent counterfeiting and shoddy products from flooding the market and entrapment consumers. It is also an important aspect of attracting luxury consumption.

    Last year's "Da Vinci furniture" incident shows that there are still problems in the supervision of the luxury consumer market. Many people are skeptical about the quality and origin of the products, so they go abroad to spend.


    The luxury outflow of about 50000000000 dollars a year, a spring festival of $7 billion 200 million, for stimulating domestic demand, is a small amount.

    Coping strategies should be adopted to change the status quo.

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