At present, China's luxury consumption accounts for a quarter of the global market, surpassing the United States to become the second largest luxury consumer in the world. At the same time, China has become one of the countries with the strongest purchasing power of luxury cars in the world. The latest statistics show that BMW Group's global sales decreased by 19% year-on-year, while its sales in China increased by 26% year-on-year. In China, luxury consumption has become a social trend. Yacht is a new high-end consumer product in China in recent years, which is only for minority consumption. Golf is becoming a favorite sport of the newly rich.
The "Ministry of Finance" of the Taiwan authorities reached an understanding that "luxury tax is going to be levied in the direction", but considering the technology and market impact of the levy, five luxury houses, high-priced cars, heavy locomotives, private jets and yachts were initially locked, and it is expected that the bill will be introduced before the end of this year.
In order to reduce the inheritance tax from 50% to 10%, the Ministry of Finance commissioned scholars to study the issue of luxury tax. Scholars suggested levying luxury tax and locking in eight items, including luxury houses (less than 10 years), expensive cars (more than 3,000 cc), heavy locomotives (more than 500 cc), private jets and yachts, and jewelry, watches and gold ornaments with NT$ 200,000 or more.
The "Ministry of Finance" thinks that people's reaction to luxury tax is mostly positive, so it plans to levy it, but it may be implemented in stages. The first stage includes five categories: luxury houses, expensive cars, heavy locomotives, private jets and yachts; As for jewelry, watches, gold ornaments, etc., it is difficult for tax authorities to master, which may affect the boutique industry, so it is necessary to wait until the second stage to study the feasibility.
It is understood that there will be no special law to levy luxury tax, as long as the existing laws and regulations can be modified. For example, luxury houses can increase housing tax and land tax by raising standard house prices and publishing land prices. The "Ministry of Finance" will invite tax offices in counties and cities to discuss this week, and plan to amend the "Housing Tax Regulations" in the future, changing the standard house price from once every three years to once a year. As for high-priced cars, heavy locomotives, private jets and yachts, goods tax and license tax may be increased, and the Goods Tax Ordinance and the License Tax Law may be amended in the future; However, in order to prevent the rich from registering their planes and yachts in the company name to avoid luxury tax, they will be renamed as "private planes and yachts".
In addition, when the luxury tax is levied, it can be levied during the holding period or it can be levied during the holding period. For example, luxury tax may be levied on high-priced cars at the time of purchase, and it will continue to be levied for five years after purchase.