Forty percent of Chinese people believe consumption taxes should
be imposed on more luxury items such as jewelry and VIP club
memberships, according to a survey.
The survey by the Horizon Research Consultancy Group shows
low-income earners would prefer to see luxury items taxed rather
than common goods, while high-income people gave little
consideration to the adjustment of consumption tax.
The government imposed a consumption tax on disposable wooden
chopsticks, wooden floor panels, yachts, luxury watches and oil
based products on April 1.
The move aimed to control and regulate energy consumption, help
protect the environment by reducing demand for timber resources,
and narrow the gap between rich and poor by taxing luxury
items.
A taxation official told China Business News that
consumption tax played so big a role in daily life that no
adjustment would be made without thorough consideration.
"In no way can we impose a consumption tax on rare luxury items
with no common properties and which are difficult to value," said
the official. "But company and other taxes can be imposed when
these items are in circulation."
Analysts with the Horizon Research Consultancy Group said
high-income people were less sensitive to prices and would continue
to buy luxury goods even if prices rose by 10 percent.
The company interviewed 2,552 people in the 20 cities. The
survey showed the adjustment of consumption tax was generally
accepted, especially on luxury items and oil based products.
(Xinhua News Agency October 13, 2006)