A Research On The Effect Of Tax On The Price Of Imported Luxury Goods In China

In recent years,the swelling tide of buying luxury goods abroad has emerged prominently in China,more and more consumers have go abroad to buy luxury goods.Luxury goods worldwide market study in 2015 that Bain company recently released shows that local spending in Mainland China represents only 20% of global Chinese shoppers' purchases,the remaining 80% of global Chinese shoppers' purchases is in the overseas luxury market,the luxury consumption outflows seriously.How to narrow luxury price differences at home and abroad and achieve the return of consumer demand have become the hot issues in society,but for the tax is the main factor affecting the price of luxury goods,and whether tax reduction can cause a decrease in the price of luxury goods,and prompt luxury goods consumption reflux,these problems have always been debated.In order to prevent the outflow of luxury goods consumption and improve the tax policy,this article mainly uses the comparative analysis and case study method to study the effect of tax on the price of imported luxury goods in China.First of all,from the basic theory of luxury goods,luxury tax and luxury pricing,this paper introduces the luxury tax situation in our country and the luxury goods pricing theory,then points out that the factors affecting the price of luxury goods include cost factors,demand factors and competitive factors,tax cost is only part of the cost,therefore,these factors can be divided into tax factors and non-tax factors.Secondly,this article selects cosmetics,handbags,clothing and watches four kinds of luxury goods,and calculates that the tax burden of the several types of luxury goods in our country are at about 20% on the basis of their CIF price,then uses the method of comparative analysis to compare nominal tax rates of luxury goods in various countries and regions,finds that the overall tax burden of luxury goods in China is heavy,but the tax burden of luxury goods have some differences individually.Further,this article use the case study method to contrast the tax burden with the price of these luxury goods in various countries and regions,and finds that the price of luxury goods does not increase with the tax burden,for example,the price in the heavy tax burden country is not high,so the tax is not the main factor influencing the price of luxury goods.Thirdly,this paper analyzes the effect of other non-tax factors for luxury goods price,such as high logistics costs,hidden sales costs,strong demand and weak brand competitiveness,these are the cause of luxury price differences at home and abroad.Finally,this article puts forward some concrete suggestions from two aspects of tax and non tax factors,then hopes to have certain reference significance to improve the luxury tax policy,narrow luxury price differences at home and abroad,and promote luxury consumption reflux.