Luxury tax is a kind of consumption tax levied on luxury goods. There is no accurate definition and classification standard of "luxury" in China, and the definition of "luxury" is always relative under certain social and economic conditions. Therefore, luxury goods tax needs to be adjusted according to the development of social economy. In April 2006, China adjusted the consumption tax items, and included some luxury goods that were excluded from the consumption tax into the scope of taxation, with the aim of adjusting the gap between the rich and the poor and promoting social equity.
In 2006? The Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China jointly issued a notice to adjust the consumption tax system from April 1 2006, cancel the tax items of "skin care products", adjust the tax rates of some taxable consumer goods such as liquor, automobiles, motorcycles and automobile tires, and add new tax items such as golf balls and equipment, high-end watches, yachts, wooden disposable chopsticks and solid wood floors; Refined oil tax item, the original gasoline and diesel tax items are two subheadings of this tax item, and five subheadings of naphtha, solvent oil, lubricating oil, fuel oil and aviation kerosene are added at the same time. This is the biggest adjustment of consumption tax since the tax reform of 1994.
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Experts believe that it is necessary to levy a luxury tax.
Zhang Bin, deputy director of the Tax Research Office of the Institute of Finance and Trade of China Academy of Social Sciences, and Professor Wang from the International Business School of the University of International Business and Economics said that levying luxury goods tax is also a way to adjust the income distribution structure, so we might as well try it, but it is more important to adjust it through personal income tax.
Earlier, Wang Yongjun, dean of the Institute of Finance and Economics of the Central University of Finance and Economics, also said that luxury consumption in China is on the rise. There is a huge market for luxury houses and luxury cars, but the consumption tax on luxury goods has not kept up. At present, the polarization between the rich and the poor is growing, so the tax on luxury goods should be strengthened, while the tax on general consumer goods can be reduced.
China levied consumption tax from 65438 to 0994, and it was adjusted once in 2006. However, Professor Wang said that the current tax target is too narrow, with only 14 commodities. On this basis, we will make adjustments to eliminate commodities that used to be "luxury goods" but are now necessities for the public, and then keep pace with the times.
By taxing luxury goods and luxury behaviors, it is also a supplement to taxing high-income groups, which can make the taxation function more fair. It can also force consumption to become more rational and fair. It also plays a positive role in solving the widening income gap and balancing the interests of all sectors of society.
References:
Baidu encyclopedia-luxury tax
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China Net-Experts believe that it is necessary to levy a luxury tax.