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    Consumption Tax New Deal To Release Luxury Goods In China

    2013/9/1 20:19:00 27

    Consumption TaxLuxury GoodsChinese Market

    < p > the new deal on luxury consumption tax has been released in an uproar.

    If a large number of high-end consumer goods are included in the scope of consumption tax in the future, most brands will have to change the pricing mechanism and management strategy.

    < /p >


    < p > Lou Jiwei, Minister of finance, said recently that the scope of consumption tax should be expanded and some high-end consumer goods should be included.

    In China's established luxury consumption tax policy, it covers 14 tax items, including cosmetics, precious jewelry and jewels, precious a href= "http://www.91se91.com/news/index_c.asp" > clothing < /a > and shoes, golf and ball games, high-end watches and yachts, and the tax rate varies from 10%-30% to 10%-30%.

    < /p >


    < p > for this reason, Zhou Ting, a href= "http://www.91se91.com/news/index_c.asp" > luxury goods < /a > domain expert, President of the Institute of wealth quality research, thinks that besides the private aircraft, the commodities involved may also involve high-grade glasses and precious ceramic products.

    < /p >


    < p > Zhou Ting said that if the new consumption tax policy is implemented, it will make the already depressed luxury market even worse.

    For the brand dealers involved, the most common way is to pass the cost increase caused by the consumption tax to the terminal consumers, that is, to raise the commodity prices.

    < /p >


    Kang Lanxin, Dean of the school of dress and collocation, said that the scope of the consumption tax can effectively limit the excessive consumption of some "a href=" http://www.91se91.com/news/index_c.asp "high-grade commodities < /a >, and also lead to the increase of some luxury goods prices."

    < /p >


    < p > if the price of luxury goods abroad has not improved, while the price of luxury goods in China has been rising again and again, consumers may choose to buy abroad or buy abroad directly.

    In 2012, China's luxury market grew by only 7%.

    The total consumption of overseas Chinese in 2012 has increased to nearly two times that of 2012.

    < /p >

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