Research On The Beneficiary Of The Consumption Tax Deduction For Cosmetics

Since the reform and opening up of our country,with the continuous development of economic society and the continuous improvement of the living standard of residents,China's cosmetics consumption market has also made rapid progress,and cosmetics gradually evolved into one of the popular consumer goods.In September 30,2016,the Ministry of Finance and the State Administration of Taxation and the General Administration of Customs jointly issued a new relief policy on cosmetics consumption tax,to clearly define the criteria for high-grade cosmetics and low-grade cosmetics,and reduce the high-grade cosmetics consumption tax rate from 30%to 15%,and reduce the low-grade cosmetics consumption tax rate from 30%to 0%.Public economic theory holds that the government's tax relief policy has the function of regulating income redistribution,but in the actual implementation process,the purpose of policy-making may be different from the ultimate beneficiary.Therefore,starting from the principle of tax transfer and destination,this paper studies the ultimate benefit of cosmetics consumption tax relief,that is,whether the benefits of cosmetic consumption tax reduction will be enjoyed by producers or consumers.In this paper,author uses the monthly average sales price of cosmetic brands as the representative data which was from June 2016 to June 2017 involved in.38 cosmetic brands,using the high-grade cosmetics and low-grade cosmetics consumption tax policy were same at first but later were different,to establish difference-in-differences model of cosmetics consumption tax to study the final benefit incidence.The final conclusion is that after the implementation of the new cosmetic consumption tax relief policy,the sales price of low-grade cosmetics is reduced by 9.6%-12.5%compared with the sales price of high-grade cosmetics,that is,the benefits of the cosmetic consumption tax relief policy are mainly enjoyed by consumers.This paper is divided into five parts.The first part is introduction.It mainly discusses the background and significance of the topic,literature review on the principles of tax transfer and destination,and the main research methods and innovations in this paper.The second part combed the policy reform and current situation of the current collection of cosmetics consumption tax,and put forward the problems and defects in the process of expropriation.In the third part,using the theory of local equilibrium,from the perspective of macro and micro economics,the problem of the benefit and destination of the cosmetics consumption tax reduction is analyzed.The fourth part,using the difference of the high and low cosmetics consumption tax rate is the same as 30%at first,but after the relief policy,the low cosmetic consumption tax rate is 0%,and the high-grade cosmetics tax rate is reduced to 15%,a difference-in-differences model is established to study the final benefit of the cosmetics consumption tax relief.The final conclusion is that after the implementation of the new cosmetic consumption tax rate reduction policy,the price of low-grade cosmetics is much lower than the price of high-grade cosmetics,which is 9.6%-12.5%lower than that of high-grade cosmetics.So the benefits of the cosmetic consumption tax reduction are mainly enjoyed by consumers.In the final part,the writer summed up the main conclusions of this study and put forward policy suggestions which were aimed at the problems existing in the process of collecting cosmetics consumption tax.