As of 1 june, our country will have reduced the import duty rate on consumer daily goods such as clothing, boots and skins, by an average of over 50 per cent. At the same time, consumer tax rates are adjusted appropriately。
The good news has drawn the attention of the companies concerned in kawamoto." during these days, companies are paying close attention to the specific varieties involved in the lowering of import duties and consumer rates in preparation for timely adjustment of the range of imported goods.” sasa xiaochuan, deputy managing director of sichuan new limited, told the journalist。
Tax reduction as an incentive for consumption
Professionals said that there was a reason for the government to introduce such a policy at this time. According to ministry of commerce data, for the first time in 2014, chinese consumption outside china exceeded rmb 1 trillion, ranging from toilet covers to powdered milk, to yachts and properties, where chinese eat and live. “in order for consumption to return to the country, to stabilize economic growth, and to increase tax revenues, such policies are needed. This post is part of our special coverage syria protests 2011。
The economic slowdown led to a new tax deal. In sichuan, for example, from january to april this year, sichuan achieved a total retail trade in social consumer goods of $42,641 million, an increase of 11. 7 per cent, a rate of 0. 1 percentage points lower than in the first quarter. In april, retail sales of social consumer goods totalled $10. 835 billion, an increase of 11. 5 per cent, which was 0. 5 percentage points lower than in march and 1. 9 percentage points lower than in march。
Between january and april of this year, sichuan exports fell by 5. 1 per cent, or 25. 6 per cent, by $14. 7 billion, and imports by $5. 6 billion. Of this amount, us$ 1. 34 billion was imported in april, a decrease of 33. 4 per cent。
Consumption is an important “engine” of economic growth, and it is essential to boost domestic consumption demand around meeting the requirements for the upgrading of consumption among our population. In keeping with this trend, the state council has reduced import tariffs and will improve its consumer tax policy on consumer goods such as clothing and cosmetics in conjunction with tax reform. “the market share of imported goods can be maintained only by lowering prices and narrowing the price differentials of imported goods at home and abroad, so that government tax cuts can be understood as borrowing power to push ahead.”。
For buying luxury goods at home
However, adjustment of the excise tax would have a greater impact on domestic consumption than tariff reductions. In the case of imported cosmetics, for example, the tariff rate was 10 per cent, while the excise tax rate was 30 per cent, plus 17 per cent vat, which added up to 57 per cent. In other words, consumers buy $100 in goods, of which 57 are taxed. “on the face of it, taxes are an integral part of commodity prices, and it is sufficient for businesses to transfer them directly to consumers, with no effect on them from tariff and excise tax adjustments, which is not the case.” in the case of imported cosmetics, for example, there is a duty rate of 10 per cent, while the consumer tax rate is 30 per cent and the value added tax is 17 per cent. If the value added tax is more than 5 per cent of the commodity price at 30 per cent of the value added, the addition is as high as 45 per cent。
On the basis of this 50 per cent reduction in both tariff and excise tax rates, i. E. 5 per cent of the reduced tariff rate, 15 per cent of the excise tax and 17 per cent of the value added tax, the value added tax (vat) represents more than 5 per cent of the commodity price, plus 25 per cent. This is 20 percentage points lower than before the adjustment. “according to the current high consumption tax on luxury goods at home, consumers have gone abroad to buy luxury goods.” xiaochuan said that a lower consumption tax would facilitate domestic purchases of luxury goods by consumers。
