The Research On Importing Tax Of Luxury Goods

At present, with China’s economic level improves significantly; luxury goodsconsumption in China presents a mushroom growth. The report that the world luxuryassociation recently released points out that in2011the amount of luxury goodsconsumption in Chinese mainland market has reached to$10.7billon, which accounts for aquarter of the whole global share. They also expect China surpass Japan and to be theworld’s top luxury goods consumer in2012.In order to better use the benefits from luxury trade to serve China’s economydevelopment, this article studies the tax adjusting problem of luxury goods by using thecombination of theoretical and empirical analysis. First, the article references to thedefinitions of luxury that given by existing scholars and then stratified defines the specificluxury goods to be studied in this paper. Secondly, from the theoretical point of view, thethesis uses the combination of theoretical and empirical analysis to draw the conclusionthat if we tax a commodity, the tax burden has a great relationship with the price elasticityof demand and the alternative of commodities. Next, the author establishes a model ofoligopolistic competition under the conditions of foreign companies entering market first.The analysis reveals that both maximum revenue tariff and maximum welfare tariff havereverse relationships with the alternative of commodities. At the same time, different levelsof luxury goods have different alternative of commodities, the more luxury the goods is,the lower the alternative is. Again, the article takes a multiple linear regression method toanalyze the factors that impact luxury consumption in different levels from the empiricalangle. Then horizontal compares the size of the same factors that affect different levels ofluxury consumption. Finally, according to the theoretical and empirical analysis above, theauthor makes the policy suggestions for the consumption tax and tariff of luxury goods inimporting link which based on the luxury tax of developed countries.