Should The State Strengthen Tax On Luxury Goods Consumption?

< p > in view of the news that the 1 million 700 thousand yuan (or above) luxury car has to pay a luxury tax since June 1st, the Deputy Secretary General of the China Automobile Industry Association Luo Lei has confirmed that the news is basically true.

The object of taxation is the luxury car with a price of more than 1 million 700 thousand yuan after the value added tax is deducted, and the provisional fee is 20%, which is charged at the same time as the purchase tax.

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< p > Taxation on luxury goods is a universal choice of the international community.

In the Hongkong area of China, the tax rate of HK $150 thousand and HK $300 thousand is 65%; the tax rate exceeds HK $300 thousand and HK $500 thousand; the tax rate is 85%; and the vehicle with HK $500 thousand is subject to 100% registration tax.

Not only developed countries such as Europe, America, Canada, Switzerland, and Asia have taxed luxury goods such as luxury cars, planes, jewellery, cigarettes, alcohol, watches, etc., but developing countries also impose a consumption tax on luxury consumption.

As the world's largest luxury consumer country, how can China not integrate with the international market? < /p >

< p > we do not seem to realize that domestic consumption is the trump card to enrich the country and the people. Not only do some government departments discriminate against domestic goods and advocate foreign goods in different ways, but many rich people are also keen to buy foreign luxury cars.

Therefore, luxury tax or luxury consumption tax on luxury cars will not affect the life of the middle and low income groups, or prevent some people from doing more money than people.

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< p > secondly, heavy taxes on luxury cars and other luxury courses can guide and regulate excessive consumption.

The survey report on "China's luxury behavior psychology trend" shows that more than 70% of Chinese consumers buy luxury goods in order to have a luxury product. Brand culture is not important, let more people know that it is luxury goods, the biggest selling point is "must be a recognized luxury in the circle".

In fact, a lot of luxuries are "Made in China". They pull out of the customs and go to the sea to circle, and sign the brand of a country of origin.

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Tax revenue is the foundation of national economic and social development and progress. Many private enterprise owners' luxury consumption, such as aircraft, yachts, luxury cars and high-end clubhouses, are purchased in the name of enterprises. All of them make "cost costs" from accounting. They not only evade personal tax, but also deduct enterprise income tax.

Therefore, the state should not only levy taxes on luxury goods, but also strengthen the tax collection and management of luxury goods consumption.

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