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The Adjustment Of Luxury Tax Should Start From The Problem Itself And Not Be Restricted By The Interests Of The Department.

2011/7/14 9:53:00 54

Luxury Tariff Market

Of

Luxury goods

Imported

tariff

The debate on whether or not to be lowered is still ongoing. The Ministry of Commerce and the Ministry of finance have their own opinions.

Zhang Xiaoji, Minister of foreign affairs of the National Research Center, recently said that the differences between the Ministry of Commerce and the Ministry of finance were mainly due to their different positions.

The Ministry of commerce is responsible for trade and domestic consumption. After tax reduction, the scale of trade expands and the domestic market is more active.


Zhang Xiao Ji points out the essence of the controversy of the two sector.

However, the luxury tax should not be lowered. Before discussing this issue, it is first necessary to understand the concept of luxury.

Obviously, according to the meaning of luxury, only expensive and ordinary people can not afford to be luxuries.

From the large number of luxuries that Chinese people buy overseas, they are mainly concentrated on

Clothes & Accessories

On the personal necessities such as perfume, watches, bags and so on, these things are, of course, luxuries in the low income level and the shortage of materials. But to put them on the table today, they are rather reluctant to be called luxuries.

In Europe and America, the traditional luxury refers to houses, cars, yachts, luxury tourism and so on.

The Ministry of Commerce calls luxury goods a medium and high grade consumer goods, which I think is more appropriate.


Sorting out the meaning of the concept of luxury helps us to determine whether we should levy or lower tariffs on imported luxury goods.

If luxuries are regarded as high-end consumer goods, they should substantially reduce their import tariffs, rather than maintain the existing level of tax burden.


The Ministry of Finance said that the more imported luxury goods, the more polarizing society will be, and the construction of social equity will be disadvantaged.

This reason seems reasonable, but in fact it is quite wrong.

The foundation of polarization is not that more and more rich people are buying luxury goods, but that there is a problem in the first distribution link.

If you don't let rich people buy luxury goods in China, they can buy them abroad. Just like now, the result is also aggravating the distribution and polarization of domestic distribution.

If we are afraid of polarization, we can impose a heavy tax on the rich to purchase luxury goods, which is theoretically conducive to easing the income distribution relationship, because the state can make use of the luxury consumption tax on the levy, and use the two distribution in the form of subsidies for low-income groups.

But actually, it can not effectively regulate the distribution gap.

It is very simple to impose heavy taxes on luxury goods, which will definitely reduce the purchasing power of the rich in China.

In this way, although the tax burden is very high, because of the reduced paction, the luxury consumption tax actually can not be much.


In fact, levying heavy taxes on luxury goods is not only bad for raising taxes, but may reduce national taxes.

Because China's import and export of high-end consumer goods, not only need to pay customs duties, but also to pay consumption tax and value-added tax.

At present, the proportion of these three taxes is that customs duties vary from 6.5%~18%, value-added tax is 17%, consumption tax is 30%, and the total amount of taxes and fees that need to be paid is more than 60%.

Take the Swiss moon goddess Tissot women's watch as an example, it sells for 2700 yuan in the domestic market, including 17% VAT 392 yuan, 30% consumption tax 623 yuan, urban maintenance and construction tax 71 yuan, 11% customs duty 267 yuan, the total tax amounts to 1353 yuan, accounting for half of the commodity price.

Although tariffs can increase revenue by 267 yuan, the consequence is the decline in purchasing power.

That is to say, 1076 yuan in the 1353 yuan tax will be lost due to customs duties.


As for reducing tariffs on imported luxury goods, it will encourage luxury goods to dominate the domestic market, thereby increasing dependence on foreign luxury goods and affecting domestic related enterprises and industries. This risk is bound to exist. But the question is, does this risk not exist with tariff protection? Consumers vote with feet to buy abroad, and domestic luxury goods enterprises and industries are also hard to grow and expand.

Practice has proved that only opening and competition can achieve the competitiveness of an industry and an enterprise.


No matter from which point of view, it is better to lower customs duties on imports of high-end consumer goods, or so-called luxury goods.

At present, the price of luxury goods in China is far too high. According to the findings of the Ministry of Commerce, in the 20 high-end consumer goods brands such as watches, bags, clothing, wine and electronic products, the market price in the mainland of China is about 45% higher than that in the Chinese market of Hongkong, 51% higher than that in the United States, and 72% higher than that in France. Such a high price will not only hinder the development of the domestic market, but also restrict the consumers' right to choose.

Because the consumption of luxury goods is a process, every link in it will bring about the expansion of service and consumption. In addition, a large number of high-quality foreign luxury goods will also push domestic enterprises to improve their product quality. This is not only the improvement of the competitiveness of enterprises, but also the expansion of consumers' freedom of choice.

Therefore, we should start with the problem itself and not be restricted by the interests of some departments.

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