Studies On The Luxury Tax In China

The luxury consumption in our country is growing rapidly and ourcountry has the potential to become the world's largest luxury consumer,but at present the luxury tax collection in our country remains to besynchronous follow-up. On April1st,2006, our country has adjusted taxitems of consumption tax with a part of luxury integrated into theincidence of taxation. However, as the high-speed development of themarket economy, the existing scope for the tax on luxuries is too narrow,the tax rates are low and the method of tax collection is not rational. Inorder to adjust the gap between the rich and the poor, to promote socialfairness and to embody the spirit of legislation of the tax law better, it'snecessary to have a series of reform including determining the luxury taxrange reasonably, improving the luxury tax rates, limiting excessiveconsumption, changing the method of tax collection from taxes includedin the calculated prices to taxes excluded in the calculated prices and soon. The paper uses the situation about our country's current luxuryconsumption as a starting point, analyzes the problems exposed in theprocess of luxury consumption, expounds the necessity of consumptiontax on luxury goods and the role played by consumption tax reform, andat last put forward some rational suggestions to different questions aboutluxury consumption tax.