Impact Of Sliding Tax On China'S Cotton Market

< p > sliding quasi tax, also known as sliding tax, is an import tariff imposed on the same commodity of < a href= "http://www.91se91.com/news/index_c.asp" > Import Tax < /a > according to its market price standard, and the tax rate is set at different price grades.

Its high price tax rate is low or not taxed, and the low price tax rate is high.

The purpose of such a tariff is to maintain the relative stability of the domestic market price of sliding quasi tax goods and minimize the impact of price fluctuations in the international market.

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< p > sliding tax first appeared in the British corn law during mercantilism (1670).

The law stipulates that when the price of wheat quartiles is 8 shillings at 53 shillings 4 pence to 80 shillings, the 16 shillings can be taxed when the price of wheat is less than 53 shillings 4 pence, so that the British wheat market will often maintain a higher price, thereby protecting the grain production of the feudal farmers.

The implementation of the corn law caused the struggle between the new bourgeoisie and the feudal landlord class, which was abolished in 1849, and only a few countries later used it.

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The role of < p > sliding tax was really brought into play after the establishment of the European Community (EC) in 1967.

At that time, France was constrained by the constraints of the common body, and its grain prices lacked effective competitiveness. Therefore, in view of the purpose of protecting agriculture, France initiated the EC to impose a quasi tax system on grain imports, thereby protecting the interests of the developed agricultural countries in the European Union led by France.

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< p > the implementation of sliding quasi tax on the one hand ensures the unification of the grain prices of the European community, and on the other hand avoids the impact of the low grain grain on the grain of the European community.

Subsequently, sliding tax became the main tool for the protection of agricultural products under the framework of the European Community's agricultural policy. The implementation of sliding tax products also expanded from grain to dairy products, sugar, olive oil, eggs, poultry, pork, beef and beef cattle.

In 1995, the European Union abolished the quasi tax system for agricultural products.

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Since the implementation of < p > a href= "http://www.91se91.com/news/index_c.asp" > sliding tax /a > has been controversial, although the aim is to protect the European Community's agricultural products, the effect needs to be verified.

Some experts believe that although the sliding tax can isolate some domestic commodity markets from the international market, so that the domestic market of their goods will not be affected by the international market price, the sliding tax will have an amplification effect on the fluctuation of the international market, because when the target price remains unchanged, when the international market is short of supply and the price is rising, the reduction of tax rate will increase the demand of importing countries for the goods, thereby further expanding the gap in the international market and causing greater market volatility.

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< p > Will Martin, research director of the world bank development research department, suggested that if the current import quota of cotton quotas increased further, and the current import tariff rate of cotton yarn was only 5%, then it would be possible for China to import large quantities of "a href=" http://www.91se91.com/ news/index_c.asp "cotton yarn < /a" instead of imported cotton.

This will not only bring impact to the domestic market price of cotton, but also bring impact on domestic cotton spinning industry.

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"P", however, Chinese agricultural experts have proved that slippery tax has played a significant role in stabilizing the market price. However, the current slippery tax system may lead to the problem of "yarn substitution", but it still insists that the slippery tax can not be easily abandoned, and the current cotton import is also in accordance with the national interests.

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