Tax Cuts Are Open To Question &Nbsp; Chinese People Buy 50 Billion Luxury Goods In Europe.

The Ministry of Commerce and the Ministry of Finance disagree on the issue of luxury tax reduction. However, at the 2011 World Customs Conference on China's luxury goods association, two ministries and thinkers have reached a consensus on one issue: top luxury goods should not be reduced taxes, and even tariffs can be raised if necessary.

For Chinese consumers, overseas purchasing power of luxury goods has also been pointed out by experts. Too exaggerated. Mei Xinyu, a senior researcher at the Ministry of Commerce, pointed out that the data released by the World Luxury Association in June showed that Chinese people spent nearly 50 billion dollars on luxury goods consumption in Europe last year, which is 4 times as large as the domestic market. The price gap led to a serious "spillover" of luxury consumption in China. However, official statistics show that the total expenditure on tourism services outside China last year was 54 billion 880 million dollars. If Chinese tourists bought luxuries in Europe alone, they would spend 50 billion dollars, which means that the average person spends only more than 80 dollars on board and accommodation expenses. "In the absurd data, it is concluded that the import tariff of luxury goods should be reduced, and the conclusion that the consumption of this about 300000000000 yuan RMB will remain in China is untenable."

On June 15th, Yao Jian, spokesman of the Ministry of Commerce, said that China would further reduce its economy. Import duties The relevant government departments have reached a consensus on the tariff of medium and high grade commodities. However, in less than a week, the officials of the Ministry of finance made a very different statement, saying that there was no plan to adjust the import tariffs of luxury goods. The two ministries and commissions on the issue of luxury tariffs' "openness" also triggered a series of discussions among the people.

The Ministerial Committee did not give a clear indication of whether the luxury tariff would be adjusted in the year. Liu Zuo, director of the taxation department of the State Administration of Taxation, said that the general tariff adjustment was at the end of the year. Luxury goods levy more tax than ordinary consumer goods, which is a common practice in developing countries.

Gong Huiwen, a foreign tax research fellow at the tax department of the State Administration of Taxation, and Zhao Ping, director of the Consumer Economics Research Institute of the Ministry of Commerce, think that the so-called luxury tax reduction should be treated differently. Gong Huiwen said that domestic luxury products, such as cosmetics and perfume, should be appropriately reduced in terms of import duties and consumption tax, and domestic policies are also being studied. For some high-end luxury goods, such as watches and jewellery, which are far away from most residents, they can not reduce taxes, and import tariffs can also be increased if necessary.

The World Luxury Association released yesterday to the one or two quarter of this year. Luxury price The increase survey shows that the price difference between domestic and overseas luxury goods market is still huge, from 50% to 350%.