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.
Extended data:
The influence of luxury goods tax on consumption;
1. In China, the consumer groups of luxury goods can be divided into several different levels: first, the top rich, who are real aristocrats, emphasize quality and details, and pay attention to taste and cultural connotation; Secondly, the wealthy middle class, who are the main force of luxury consumption in China; At the same time, a group that is not rich but has a desire to buy is on the rise.
2. Taxing luxury goods increases the price of goods, and the consumption behavior of the top rich class will hardly be affected. However, after all, this class is only a very small number of consumers in the luxury market.
3. The research of China Brand Strategy Association shows that at present (as of 20 12), the number of luxury consumers in China has reached 13% of the total population, about1600,000. Therefore, even if most consumers don't care about the price changes of taxable luxury goods, the decline in real income will definitely affect their consumption of all goods (including taxable goods and duty-free goods).
4. Because the income elasticity of luxury demand is greater than 1, that is, the decrease of demand is greater than the decrease of income, luxury tax leads to the increase of price, which makes the actual income of consumers decrease, and the impact on luxury demand is far greater than that on the demand for necessities under the same conditions.
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