The Draft Of The Consumption Tax Law Is Released. See What Has Changed And What Has Not Changed?

Yesterday, the official website of the Ministry of Finance issued the draft for the consumption tax law of the People's Republic of China, and openly solicited opinions from the public. The draft has maintained the overall framework of the current tax system and the overall level of tax burden. According to the tax rate table of the draft, liquor is taxed in the production (import) link, the tax rate is 20% plus 0.5 yuan /500 grams (or 500 milliliters), no adjustment; high-grade cosmetics in production (import) taxed 15%; gold and silver jewelry, platinum jewelry and diamond and diamond jewelry taxed in the retail sector, the tax rate is 5%; ultra luxury cars in addition to production (import) taxing, retail tax taxed at 10%. The duty rate of batteries and coatings is 4%.

The consumption tax law draft has been released, and the overall tax burden level remains unchanged.

How to interpret the draft of the new consumption tax law? Hou Jie, a financial commentator, said:

Promoting consumption by legislation and stimulating endogenous driving force of economy

Or from Moutai, the stock price fell a few days ago. The news factor is that the market is worried that the draft will adjust the liquor tax rate and increase the levy on the sales side. Last night, when the tax rate was unchanged, Moutai and other high-end liquor stocks rose today, and the large consumption segments that were in the early stages of adjustment were also active.

In fact, there was no need to worry before. According to the central government's policy of vigorously promoting consumption, implementing tax reduction and tariff reduction and eliminating blocking points in circulation, the possibility of increasing tax burden is almost zero. The first key word in this draft is "no tax increase". The tax rate basically remains unchanged and the collection link remains unchanged.

So where is the change?

First of all, from the "Regulations" to the "law". We should promote consumption in the form of national legislation and further stimulate the endogenous driving force of China's economy.

Second, the contents of the "State Council authorized the State Council to organize relevant pilot projects, adjust tax items, tax rates, collection links and report to the Standing Committee of the National People's Congress for archival purposes" are added to reserve the policy adjustment space for deepening the consumption tax reform. This is of great significance for deregulation of the real economy and upgrading of consumption.

Third, the tax time is clearly defined. Since it is called the consumption tax, the tax can only be collected if the goods are sold or the invoices are invoices. The non-standard of tax collection was eliminated by legal means, and the business environment was further optimized.

Fourth, from the point of view of capital market, the pressure of news surface has been alleviated, and the short term of large consumption plate, especially the high-end liquor plate, will be shown.

Finally, I would like to say that legislation is the starting point, not the end. With the promotion and perfection of the consumption tax legislation, we can better escort the enterprises and untie the consumption.