Literature Review on Importing Tax Policy of China’s Luxury Goods

Abstract

Since Chin a’ 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 ha ve 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 bec o me s 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 show s a blind heat and consumption drain, which ha ve 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.