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    Luxury Goods Continued High Fever &Nbsp; Extended Duty Free Zones Could Cool Down.

    2012/3/7 10:54:00 22

    Two Sessions Of Luxury Cooling

    At the two sessions this year, the Hermes belt, chairman of the CPPCC National Committee and chairman of the board of directors of Hengda Real Estate Group, was crazy about micro-blog on micro-blog.

    The careful netizens will enlarge the photos of the members and find that there are many famous brands.

    As a matter of fact, this is only the right people.

    Luxury goods

    A microcosm of insane obsession.


    A member of the Political Consultative Conference as a senior executive of the airline company has a deep understanding of Chinese people's luxury shopping abroad.

    He said that in recent years, many domestic residents brought back luxury goods from abroad, and often caused disputes over the number of customs restrictions.


    It is understood that foreign luxury goods prices are often cheaper than domestic two to 30% or more, which is undoubtedly the main motivation for Chinese bulk purchases.

    In this regard, CPPCC members suggested that China could consider reducing it.

    tariff

    A part of luxury shopping demand is guided back to China.

    However, setting up higher tariffs on luxury goods can not only increase taxes but also protect national industries. Therefore, it is obviously not realistic to fully reduce tariffs under current circumstances.


    There is a big price difference between luxury goods sold abroad and domestic sales of luxury goods. Apart from the tariff reasons of imported products, different tax systems are also important causes of price differentials.

    The selling price of domestic goods implies a higher tax, while the prices of goods sold in many countries and regions are free of tax. It is not difficult to understand why the prices of domestic goods sold abroad are often lower than domestic prices.

    The export of domestic goods has been refunded to some part of the enterprise through export tax rebate.

    After the overseas sale, the difference of tax system in different countries leads to the existence of price difference.


    Therefore, in the process of group discussion, a number of CPPCC members suggested that appropriate tax reductions should be made, especially the reduction of value-added tax, so as to improve the purchasing power of residents.

    As Lenovo Group Chairman Yang Yuanqing said, Lenovo computers in the country can not sell very expensive, 17% of value-added tax must be added to the price, but the gross margin of the product is actually only 15%.


    Not only luxury goods exist price scissors difference, but Shenzhen residents who are close to Hongkong have already discovered the larger price difference of daily necessities between the two places. Every day, the mainland residents who line up long queues to Hongkong to buy daily necessities become Hongkong's unique landscape.

    Because

    duty-free

    In addition to vegetables and fruits, most of Hongkong's goods are cheaper than Shenzhen. Hongkong, which is only half the size of Shenzhen, is crowded with tourists who are crazy about shopping in the mainland.


    Some experts suggested that instead of allowing mainland residents to go shopping in Hongkong or even abroad, it would be better to increase the scope of tax exempt areas within the territory. For example, on the basis of tax exemption in Islands, Hainan, Shenzhen should also be designated as a tax exempt area, while raising the tax-free quota, so that the demand for shopping abroad can be maintained in the mainland, while easing the pressure of shopping in Hongkong.

    If the value-added tax is appropriately reduced for products produced and sold in China, the cost of value-added tax pferred to consumers will be less and the price will naturally be cheaper.

    After the narrowing of domestic and foreign spreads, the demand for shopping abroad has naturally declined. For the mainland of Hongkong in dispute, it can really achieve "he is good, I am fine".

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