Research On The Optimization Of Commodity Tax To Promote The Consumption Of Urban Residents In China

For a long time,consumption has made outstanding contributions to China’s economic development and has gradually become the main force of China’s economic growth.In today’s situation where China’s economic growth rate has slowed down significantly,consumption has great potential to drive further economic growth.The sudden outbreak of COVID-19 in the past two years has also slowed down the process of residents’ consumption upgrading.China’s current commodity tax still has an overall regressive tax system in promoting residents’ consumption and promoting the construction of a new development pattern of "dual circulation".Promoting the consumption of Chinese residents has undoubtedly become one of the important goals for the optimization of China’s commodity tax in the future.Urban residents’ consumption is of great significance in China’s residents’ consumption.Therefore,it is of great practical significance to study the optimization of commodity tax to promote consumption of urban residents in China,such as perfecting the tax system,stimulating consumption vitality,stimulating economic growth,and increasing fiscal revenue.This paper first defines the relevant concepts,sorts out two theories related to consumption,points out that the income level and price level mainly affect the consumption ability of urban residents in China,and analyzes the mechanism of the effect of value-added tax and consumption tax on the consumption of residents in commodity tax.Secondly,using the relevant data and charts over the years to describe the current situation of urban residents’ consumption and commodity tax in China,and from the perspective of the level of urban residents’ consumption capacity and changes in consumption structure,quality,and channels,it is found that there is room for improvement in the current consumption of urban residents in China.Third,through the specific research and analysis of China’s current commodity tax,it is concluded that the current value-added tax and consumption tax have inhibited the consumption capacity of China’s urban residents,which is not conducive to the consumption expansion and structural upgrading of China’s urban residents.Finally,for the optimization of commodity tax,some practical suggestions are put forward,such as optimizing the scope of taxation of value-added tax,lowering its tax rate,and dynamically adjusting the scope of taxation and tax rate of consumption tax.