Luxury Goods Will Be Included In The Scope Of Taxation. Some Prices May Rise.

Lou Jiwei, Secretary of the Ministry of finance, said yesterday to the Standing Committee of the National People's Congress on the implementation of the budget this year, the next step is to expand the scope of the consumption tax levy, and bring some products which seriously pollute the environment, consume excessive resources and some high-end consumer goods into the scope of Taxation, and adjust the consumption tax collection links and tax rates. P

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< p > consumption tax has both functions of increasing revenue and guiding consumption of some commodities.

China's consumption tax is divided into domestic consumption tax and import consumption tax. The domestic consumption tax base is sales volume or sales volume of 14 specific commodities, such as tobacco, liquor, refined oil, automobile, < a href= "//www.sjfzxm.com/news/index_c.asp", high-grade watches, /a and yachts.

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< p > it is understood that in the < a href= "//www.sjfzxm.com/news/index_c.asp" > high-end consumer goods < /a >, China has imposed a 10% consumption tax on golf balls, golf clubs and golf bags (bags). It has imposed a 20% consumption tax on sales of all kinds of watches, excluding VAT, and 10% of the yacht's consumption tax on 10 thousand yuan.

At the same time, the consumption tax, which includes perfume, fragrance powder, lipstick, top grade skin care cosmetics and complete cosmetics, is up to 30%.

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< p > "because the high-end consumer goods only aim at a very small number of people, considering the particularity of the crowd and the products of the consumption tax, private aircraft and some luxury goods may be included in the scope of consumption tax in the future.

With the development of the economy, we need to further define what products belong to high-end consumer goods, and at the same time, we need to establish a dynamic adjustment mechanism to update the products in time.

Hong Tao, director of Business Economics Research Institute of Beijing Technology and Business University, and Ministry of Commerce's market operation and regulation expert said.

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< p > for the possible impact, experts believe that the inclusion of high-end consumer goods in < a href= "//www.sjfzxm.com/news/index_c.asp" > consumption tax < /a > will inevitably cause some high-end consumer goods to rise in price. In order to reduce the impact, manufacturers are likely to pfer the rising prices to consumers, and finally pay by consumers.

At the same time, as China's high-end consumer goods may have a higher price than foreign countries, it will further aggravate the purchasing power of some high-end products to foreign countries.

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