The formula for calculating the liquor consumption tax is: tax payable = sales volume × proportional tax rate + sales quantity

If the ad valorem tax rate of 20% remains unchanged and the tax base for liquor collection is changed, the final amount of tax paid will be doubled. If the premium reaches more than 400%, it shall be approved by the national tax, and if the premium reaches more than 200%, it shall be approved by the local provincial national tax.

Extended information

The following issues must be paid attention to regarding the consumption tax on grain liquor and potato liquor:

Grain liquor includes distilled liquor made from fruit trees or grains; the following Compared with grain liquor, a 25% proportional tax rate applies to alcoholic products: liquor produced by mixing grain with potatoes, bran and other raw materials; prepared wine and brewed wine with grain liquor as the base; liquor or alcohol as the base , all raw materials used in wine base.

Reference: Baidu Encyclopedia-Liquor Consumption Tax