The Tariff On Luxury Goods Should Be Lowered.

Outstanding

According to a report from the Beijing Youth Daily, the survey report released by the global tax rebate company in Switzerland showed that Chinese tourists bought duty-free in France in 2010.

Whether it is micro expression or macro data, about China

The above report shows that the overall sense of the Chinese people is that the number of Chinese luxury goods and the growth of their potential desires are "not the highest, but only higher".

According to a study from Goldman Sachs, a total of 170 million people in mainland China used to consume luxury goods, accounting for 13% of the total population.

Of these people, 13 million often buy luxury goods.

The data calculated by commentator Cheng Huijian is that in 2011, the total consumption of luxury goods in China will reach 46 billion 200 million euros (about 435 billion 660 million yuan), which is roughly equivalent to the total fiscal revenue of Suzhou, Wuxi and Nanjing in 2010.

In the face of such a huge crowd and huge amount of consumption, if we still have a "mental cleanliness" mentality such as "eroding and killing our national will" today, we should look at the Chinese people's love and purchase desire for luxury goods.

The industry estimates that luxury goods, such as clothes, bags, jewelry and cosmetics purchased by Chinese tourists abroad, are comparable to those sold in China, and may even exceed domestic sales.

How to make huge consumption of luxury goods in domestic demand has become an urgent problem for the competent authorities.

In fact, there are two reasons why Chinese people prefer to buy luxury goods abroad: first, they cannot buy the same goods in China; second, the prices of domestic goods are more expensive.

With the rapid expansion of the international luxury goods group in China, the "buy out" situation has been greatly alleviated, and the main contradiction now is "buy expensive".

The reason is that, apart from the different distribution system and pricing system of multinational corporations, and the small margin of domestic brand goods, the main reasons are: first, China's tariff and value-added tax are relatively high, the import tariffs of luxury goods are generally between 15% and 25%, while others are as high as 50% (such as cosmetics and liquor), while some developed countries are exempt from customs duties. Second, besides tariffs, luxury stores also have customs inspection, shop inspection, value-added tax, business theory, consumption tax and so on.

The whole process of every link and all taxes and fees is collected. The price of domestic luxury goods is usually at least 1/3 higher than that of the origin. A survey conducted by the Ministry of Commerce earlier showed that the high-end consumer goods of 20 brands, such as watches, clothing and wine, were 51% higher than those in the United States and 72% higher than those in France.

In view of this, we believe that appropriately reducing the relevant tax rates of luxury goods can promote the import of high-grade commodities of domestic demand and pform some overseas consumption into domestic purchases, thereby expanding the sales revenue of luxury goods in the domestic market.

Reducing the tax rate of luxury goods, though having a short-term impact on tax revenue, will be a wise policy choice in the long run. It can not only keep part of the luxury consumption in China, but also drive the development of related industries, such as manufacturing and retailing.