40% of Chinese want more luxury tax
(Xinhua)
Updated: 2006-10-13 17:54
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,
genuine wood 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.
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