Research On The Tax Policy Of Improving The Luxury Consumption Market In China

In recent years, with the continuousdevelopment of economy, China’s luxury goods market is also expanding rapidly. In 2015, the volume of global luxury products market has reached 254.9 billion dollars. Among that, Chinese customers contribute 115.7 billion dollars coupled with a overall growth rate of 9% in contrary to the figure of last year, which has indicated that 45% luxury products of the world have been purchased by Chinese people. In China, foreign consuming will reach 91.4 billion dollars in 2015 and show a rise exceeding 13% compared with the same period of last year, and also mean the 79% luxury consuming of Chinese consumers occurs abroad. According to relative researches, among the methods of purchasing luxury products, 39% consumers choose to buy during the tour abroad of their friends or relatives, buying through cross-border transaction websites is selected by 31%, while less than 30% of them will consume luxury products in domestic stores. The problem of consuming out-flow is quilt sever. At present,there still has a large number of low-income having problems in housing,and even food and clothing has not been resolved. At the same time, we have to pay attention to the widening gap between the rich and the poor, which will bring great resistance to create a harmonious society.In this cases, if only rely on the market mechanism to regulatethe gap between rich and poor is notideal. Therefore, the government should participate inwith the help of administrative, legal, economic and other means to correct the market distribution. So, the role of tax highlights. As animportant tool for the government to adjust the macro economy, the role of tax is irreplaceable in the promotion of social development and regulating consumer behavior. In summary, the part I and part Ⅱ of this article begins withthe definition of luxury, refer to the research results of experts at home and abroad, and the background and significance of tax on luxury goods in our country, summarizes the current consumption characteristics of China’s luxury goods market. Part is based on the example of Taobao Global Purchase, and Ⅲexpounds the characteristics of the overseas network purchasing, the reasons of rapidly development and the reasons for the spillover of luxury goods consumption. Part analyzⅣ es the current situation and problems of the tax of luxury goods in our country, and the effects of different income levels of consumers on luxury tax. In this part, exploring their reaction of luxury consumption behavior of Taxation firstly, summing up the existing tax loopholes of the current implementation of the luxury secondly. Part Ⅴis put forward the policy recommendations to improve the consumption of luxury goods through the analysis of the factors affecting the consumption of luxury goods.The research methods of this article include theoretical summary and case analysis. Through the introduction of the theory, it is clear that the current situation and characteristics of luxury consumption in China, and that the current tax on luxury consumption behavior is very important. Then through case analysis, pointed out the role of tax in different influencing factors in the price of luxury with the interpretation of the data. Finally, expounded the views on the issue of the current tax on luxury goods.