Tariff Stratification Adjustment Is In The Pipeline. Luxury Price Cuts Are Still Long.

Not long ago, Beijing On the world luxury forum, Ministry of Commerce The Ministry of finance, the General Administration of Taxation and other ministries and officials participated in the discussion on the delamination adjustment of luxury goods tax. The views of experts and officials are relatively consistent.

Ouyang Kun, director of the Beijing Representative Office of the World Luxury Association, said that the key to luxury tariff adjustment is to delineate the luxury goods in detail. For example, it is necessary to reduce import duties and excise taxes on public luxury goods, including cosmetics, perfume, wine and so on. Import tariffs should be increased if necessary for top luxury goods such as expensive watches and jewellery.

　　 Layered tax adjustment into consensus

Following the rebuttal of the Ministry of Commerce in July 15th when Yao Jian, a spokesman for the Ministry of Commerce, put forward the idea of "lowering the luxury tax". Luxury tax The issue has been debated between the two ministries.

It is understood that the luxury tax adjustment has been recognized by many departments. Yang Xiaodong, director of the China Council for the promotion of international trade, said that when Vice President Xi Jinping met with Vice President Biden, the vice president of the state announced that China's imports would reach US $8 trillion in the next 5 years. Last year, China's imports were only US $1 trillion and 400 billion. If we want to achieve the goal of 8 trillion yuan on this basis, there is only one way to reduce tariffs. The industry believes that the debate on luxury tax is a clear signal for the state to reduce tariffs.

Sun Lingxiang, a researcher at the China Consumer Economy Research Institute, said that China has joined the WTO 10th anniversary. As a member of WTO, China will fulfill the promise of China's tax reduction by WTO, and the decline in luxury tariffs is a major trend. To solve the problem of luxury tax increase or decrease, we must first solve the problem of "what is luxury". For a long time, the word "luxury" has not been strictly defined in China. Luxury itself should be a dynamic concept, for example, in the 70s and 80s of last century, black and white TV and fridge were luxury goods.

Ouyang Kun said that luxury goods are divided into 3 levels: the first category is private aircraft, yachts, luxury cars as the highest level, defined as category a luxury goods; second category, brand watches, jewelry, jewelry as the middle level, defined as B luxury goods; third category, with high fashion, luggage, cosmetics as the basic level, defined as C luxury goods. After the division is clear, different luxury tax rates can be formulated at different levels.

　　 Who hurt the tax cuts?

Kelly Gao, senior director of the Promotion Department of Hang Lung Properties Limited in Shandong, told the reporter that the large price difference made many consumers in China choose to go abroad to scour goods, so China lost a huge luxury consumer market. The strong purchasing power of Chinese tourists overseas has greatly enriched the European luxury market, including France. Last May to June this year, Chinese people spent nearly 50 billion dollars on luxury goods in the European market.

According to the business department survey, 20 brands of high-end consumer goods, such as watches, bags, clothing, liquor and electronic products, are clearly priced at home and abroad: the domestic market is 51% higher than that of the United States, 72% higher than that of France. As of June this year, China consumes about 15% of the world's total consumer goods, while domestic consumption accounts for only about 5% of its total consumption. Last year, the total amount of duty-free goods purchased by Chinese tourists in France amounted to 650 million euros, or about 6 billion 130 million yuan.

Li Wenlu, deputy director of the Shandong State Administration of Taxation, said that the overall tax rate on luxury goods imports in China is now between 25%-30% and some more than 50%. In other countries, basically no more than 10%. Its origin is French cosmetics, because it is sold in small shops or outlets in France, eliminating the cost of agents, and without overseas transportation, import duties and other related expenses, so it is the cheapest in France.

From the Ji'nan Business Representative Office of the Australian government of South Australia, it has learned that there are two advantages to purchase in Australia compared to the purchase of luxury goods in China: first, the "rebate policy" of the Australian government, and the two is the rise and fall of the exchange rate. The most convenient way to enjoy the Australian federal government's "tax rebate policy" is to sell directly to all kinds of luxury duty-free shops. Another way of tax rebate is TRS - as long as 3 months before the departure date, any shopping ticket item worth more than 300 Australian dollars, you can use the shopping ticket to refund the airport.

Ouyang Kun said that the current tariff problem has led to a serious trend of consumers' inclination to luxury origin. For a big consumer country like China, if these consumption can be left at home, the economy will be greatly promoted, and it will not lead to consumption spillover.

　　 When will the price reduction blow to Shandong?

Takasaki, director of the Guerlain brand Department of Shandong Ginza mall, told the reporter that in fact, like the world cosmetics brand on the first floor of Ginza mall, white-collar workers are the main force of their consumption. At present, the sales of cosmetics are the highest among the international first-line brand products. For example, the brand of Guerlain keeps 10% to 20% growth every year, and many people can accept the price of cosmetics. But if it can be roughly the same as foreign sales prices, domestic consumers will definitely choose to shop locally, so why bother to queue up abroad. But if the price is cut down, it is estimated that this year will not be realized.

Kelly Gao said that most of the luxury stores in China are now in high-end commercial complexes. Even if tariff costs are reduced, the hard operating costs such as rent, advertising and personnel will increase year by year. When choosing a storefront location, luxury brands will take the comprehensive consumption ability of a city as an important reference. Shanghai's luxury consumption capacity is the most powerful city in the mainland. At present, there are generally less discount in Ji'nan, Shenyang, Tianjin and other cities, while Shanghai's Hang Lung often has promotional activities and discounts.

Liu Wei, director of the Shandong provincial chamber of commerce circulation industry promotion center, believes that in the long run, the practical feasibility of the adjustment of luxury goods tariff is large. Foreign high-end consumer goods themselves, whether from a style or quality perspective, are indeed better than domestic products. This kind of high-grade commodity enters the domestic market, and actually has the "catfish effect", which has activated the whole consumption market. As a potential market for luxury goods consumption, Shandong will surely become one of the major brands in the next stage.