High Tax System In China Leads To Outflow Of Luxury Consumption&Nbsp; The Tax Rate Is 4.17 Times That Of The United States

According to the latest data released by the World Luxury Association, during the Spring Festival, Chinese people are abroad luxury goods Consumption totaled US $7.2 billion, up 28.57% year on year, much higher than the expected US $5.7 billion a year ago, a record high. Last year and the Spring Festival the year before last, Chinese luxury consumption overseas was 5.6 billion dollars and 4.9 billion dollars respectively.

Stimulate domestic demand in the country to revitalize the country Economics Against the strategic background of the Spring Festival, it is a "bad news" that the US $7.2 billion luxury goods were consumed "to the outside world". However, during the Spring Festival, luxury consumption shifted outward by 7.2 billion dollars, which is just a microcosm of the current outward shift of luxury consumption. According to the data released by the World Luxury Association in 2011, the consumption of Chinese people abroad is four times more than that of the domestic market, and the consumption has seriously shifted outward.

A Chinese market research company based in Shanghai estimated that Chinese tourists spent a total of 54 billion dollars overseas in 2010, and overseas tourism will continue to grow by 12% to 14% in 2011. According to the data of eBay, the monthly turnover has increased at a rate of 3 to 5 times since the launch of the website's self support business. Some scholars predict that by 2012, the scale of overseas purchasing transactions will reach 48 billion yuan.

Voting with feet, highly free market Under economic conditions, consumers are free to buy goods and consume where, when and what they choose, and no administrative authority has the right to interfere. Therefore, consumers cannot be blamed for the outward migration of luxury consumption because they are unpatriotic. So, what's the problem?

According to the survey conducted by the World Luxury Association on Chinese outbound consumers during the Spring Festival, 72% believe that the price of luxury goods purchased abroad is superior to that of domestic consumers; 69% of the people believe that there are more sources of luxury goods to buy abroad than domestic models, and there is a wide range of choices; Another 45% of people go abroad to buy luxury goods in order to enjoy real goods of origin and local services.

It can be seen that an important reason for the outward migration of luxury consumption is that foreign consumer goods are cheaper than domestic consumer goods; Secondly, the supply of goods is sufficient and there is a wide range of options. In addition, the quality is better, with the origin mark, consumers can rest assured. It can be seen that buying luxury goods abroad conforms to the laws of market economy. Therefore, if we want to change the current situation of luxury consumption moving outward and keep the consumption of tens of billions of dollars a year at home, we must start with reducing the price of domestic luxury consumption and creating a better investment and business environment, especially in reducing the price of luxury goods, we should do something.

In terms of the price of consumer goods, what we have to say is the factors affecting the current tax system. It is reported that a Swiss imported watch sold for 2700 yuan in the mainland will include 392 yuan of 17% value-added tax, 623 yuan of 30% consumption tax and 267 yuan of 11% tariff. Chinese scholars compare prices between China and the United States and find that the prices of goods exported from China to the United States are 50% cheaper than similar domestic goods. Scholars believe that China's value-added tax, consumption tax, business tax and other turnover taxes have led to high prices, and the taxes contained in Chinese goods are higher than those in any developed country: 4.17 times that of the United States, 3.76 times that of Japan, and 2.33 times that of the 15 EU countries. Therefore, reducing the tax cost of consumer goods is an option to reduce the price of consumer goods.

At the same time, we should also strengthen market supervision to prevent fake and inferior products from flooding the market and harming consumers, which is also an important aspect of attracting luxury consumption. The "Da Vinci Furniture" incident last year shows that there are still problems in the current regulation of luxury consumption market. Many people are suspicious of the quality and origin of products, so they go abroad to consume.

The outflow of luxury goods is more than 50 billion dollars a year, and 7.2 billion dollars a Spring Festival, which is not a small amount for stimulating domestic demand. We should take countermeasures to change the status quo.