China mulls widening consumption tax net
Live Punjab News Service
Beijing -- China is considering widening the consumption tax net to include new luxury items, a senior official of the taxation department told an annual forum on fiscal reforms.
Deputy director of the State Administration of Taxation (SAT) Wang Li told the annual forum here that tax reforms should included personal income tax, property tax and consumption tax.
He did not disclose the exact timetable for the imposition of consumption tax on new luxury items.
A recent survey by the Horizon Research Consultancy Group showed that 40 percent of Chinese believe that consumption taxes should be imposed on luxury items such as jewelry and VIP club memberships.
Official statistics show consumption tax revenue touched 142.85 billion yuan (about $17.86 billion), five percent of the total tax revenue.
Professor Tang Gongliang of China's Central University of Finance and Economics said that periodic adjustment of the list of luxury items subject to consumption tax needed to be updated.
"With the increase in people's living standards certain luxury items have become common and are no longer regarded as a luxury," he said.
The government imposed consumption tax on disposable wooden chopsticks, wooden floor panels, yachts, luxury watches and oil based products in April this year.