Research On The Scope And Tax Rate Of China’s Luxury Consumption Tax

For the first time,the Third Plenary Session of the 18 th CPC Central Committee upgraded the tax system reform to the strategic height of “improving and developing the socialist system with Chinese characteristics and promoting the modernization of the national governance system and governance capacity”,and entrusted it with effective allocation of resources and promoting healthy market development.The functional orientation of ensuring social fairness and unity.It is also explicitly proposed to adjust the scope,link and tax rate of consumption tax,and to include high-energy,high-pollution products and some high-end consumer goods.This is enough to see the importance attached by the Chinese government to the consumption tax.According to Bain Consulting’s luxury research report,we can see that Chinese consumers are leading the global luxury consumption.China’s luxury consumption has achieved 20% growth for two consecutive years,ranking first in the world and becoming the world.The largest luxury market.The prosperity of the luxury goods market highlights the inadequacy of China’s luxury consumption tax system,the lack of a reasonable definition of the scope of luxury goods,and the absence of a reasonable tax rate.These problems are urgently needed to be resolved.We can start with the goal and function of the consumption tax and analyze the feasibility of levying a consumption tax on luxury goods.By levying a consumption tax on luxury goods,income distribution,social equity,and social stability can be adjusted.However,from these positionings,we can find that the current consumption tax does not fully realize these functions,so the state needs to introduce certain reform policies to adjust.The first part and the second part are mainly theoretical parts.On the basis of summarizing the previous studies,the definition of luxury goods and luxury goods consumption tax,and the jurisprudence basis and tax law basis of luxury goods consumption tax collection.The tax law is based on the analysis of taxation functions and taxation principles.This paper divides luxury consumers into three groups according to their own wealth.They are super-affluent,wealthy,white-collar and others.The conclusion is that taxation of luxury goods will not be big for the super-rich class.The impact,but may cause the other two classes to reduce the consumption of luxury goods.The third part and the fourth part mainly introduce the current situation of China’s luxury consumer market and luxury goods consumption tax.Firstly,it analyzes the current luxury goods market in China.The market develops rapidly and the scale is also large,and the consumption of luxury goods is also constantly changing.The transformation,especially the lifestyle of the super-affluent class,is shifting from luxury consumption to luxury service consumption.The consumption of luxury goods by consumers of other classes is also changing.Many commodities that occupy an important position in their consumption are not included in the scope of taxation,such as high-end custom clothing and high-end bags.Then it introduces the current taxation status of luxury goods consumption tax in China and the impact of the luxury goods consumption tax on the economic behavior of different groups of consumers.The fifth part introduces the problems of the current scope and tax rate of luxury goods consumption tax in China.With the development of the economy,people’s consumption of luxury goods is constantly changing,including the content of consumption and the propensity to consume,but the consumption tax has not been followed.Changes,such as the super-rich class,are shifting to luxury services,but China’s taxation scope does not include it.There is also a mismatch in the tax rate of consumption tax.For example,the same level of consumer goods set different levels of tax rates,etc.,this article will explain the problems identified.The sixth part mainly proposes perfect suggestions for the problems found,including some high-end luxury goods and luxury services into the scope of taxation,stratifying luxury goods according to the luxury of luxury goods,setting different levels of tax rates,and setting up dynamic adjustment mechanisms.