The scope of 5% consumption tax reduction is limited to gold and silver and gold-based and silver-based alloy jewelry, as well as gold and silver and gold-based and silver-based alloy inlaid jewelry. Taxable jewelry not within the above scope is still subject to consumption tax at the rate of 10%.
Consumption tax is the general name of all kinds of taxes with the turnover of consumer goods as the object of taxation. It is a tax levied by the government on consumer goods, which can be levied on wholesalers or retailers. Consumption tax is a typical indirect tax. Consumption tax is an in-price tax, which is only paid in the production, entrusted processing and import of taxable consumer goods. In the future, because the price includes consumption tax, there is no need to pay consumption tax, and the tax will ultimately be borne by consumers.
Provisional Regulations on Consumption Tax Article 1 Units and individuals that produce, process and import consumer goods specified in these regulations in People's Republic of China (PRC), and other units and individuals that are determined by the State Council to sell consumer goods specified in these regulations are taxpayers of consumption tax and shall pay consumption tax in accordance with these regulations.
Article 13 Taxable consumer goods sold by taxpayers and taxable consumer goods produced for their own use shall, unless otherwise stipulated by the competent departments of finance and taxation of the State Council, report and pay taxes to the competent tax authorities where the taxpayer's institution is located or where it is domiciled. For taxable consumer goods entrusted for processing, unless the entrusted party is an individual, the entrusted party shall remit the consumption tax to the competent tax authorities at the place where the institution is located or where it resides. Imported taxable consumer goods shall be declared and paid to the customs at the place of declaration.
Article 12 The consumption tax shall be collected by the tax authorities, and the consumption tax on imported taxable consumer goods shall be collected by the customs.
Consumption tax shall be levied together with customs duties on taxable consumer goods brought by individuals or mailed into the country. Specific measures shall be formulated by the State Council Customs Tariff Commission jointly with relevant departments.
Article 3 Taxpayers operating consumer goods subject to consumption tax at different rates (hereinafter referred to as taxable consumer goods) shall separately account for the sales volume and quantity of taxable consumer goods at different rates; If the sales volume and quantity are not accounted separately, or taxable consumer goods with different tax rates are sold as complete sets of consumer goods, the higher tax rate shall apply.