TITLE:
Literature Review on Importing Tax Policy of China’s Luxury Goods
AUTHORS:
Danyang Sun
KEYWORDS:
Luxury, Consumption Tax, Tariff, Blind Heat, Consumption Drain
JOURNAL NAME:
Modern Economy,
Vol.9 No.3,
March
26,
2018
ABSTRACT: Since
China’s
reform and opening up, China’s economic level has improved significantly and
obtained a fast steady development; residents’ disposable income has
increased rapidly. Based
on the economic growth, the rich people quickly emerge and have a strong desire for
luxury consumption. But at
the same time, the outflow of luxury goods’ consumption in China is serious.
After entering into the “new normal”, China has become the country which obtained
the largest luxury goods consumption in the world. It also becomes the largest overseas
luxury goods consumption in the world. At present, China’s luxury goods market
in the “New Normal” faces a great deal of opportunities and challenges. Luxury
goods consumption in China shows a
blind heat and consumption drain, which have adversely affected the
economic development of our country. For instance, the wealth gap is widening, revenue
is reducing, social equality
is missing and domestic demand is insufficient etc. These issues have
become the
great problem
which is perplexing Chinese and causing widespread public concern. It is urgent
to take measures to curb the rise and outflow of consumption. Among them, the
tax adjustment on the import of luxury goods is the most important one. As the
government’s macro-control policies, adjusting tariff and consumption tax of
luxury can lead a right way to develop the luxury goods market. Many domestic
and foreign scholars have got in-depth analysis about these issues from the
perspective of tax policy. These
discussions help the growth of local luxury goods industry and the reasonable
formulation about luxury tax policies in China. This paper focuses on
summarizing the research literature on importing tax policy of China’s luxury goods. It has a very important
theoretical and practical significance.