China on Wednesday released a list of consumer goods to be taxed
at varied consumption tax rates from April 1.
The Ministry
of Finance and the General Administration of Taxation have
decided to impose different tax rates on disposable wooden
chopsticks, wooden floor panels, yachts, luxury watches and more
oil-based products.
Item |
Consumption Tax Rate
|
Disposable wooden chopstick |
5%
|
Wooden floor panel |
5% |
Yacht |
10%
|
Golf ball |
10%
|
Golf club |
10%
|
Luxury watch |
20% |
China will collect a consumption tax on naphtha, solvent, lubricant
at a rate of 0.2 yuan per liter, and 0.1 yuan per liter for
aviation fuel oil, said the ministry.
The ministry said the government will collect only 30 percent of
the tax on naphtha and solvent in order to lessen the impact on the
industry sector. It will also not collect the tax on aviation fuel
for the time being. The ministry introduced new tax rates for
automobiles, including tax rates ranging from 3 percent to 20
percent for automobiles according to the size of engines.
The tax rate for automobiles with engine size at or below 1.5
liters will be 3 percent, and 20 percent for automobiles at 4.0
liter or above.
The tax rate for light and medium-sized business passenger
vehicles will be 5 percent, according to the ministry.
The tax rate for motorcycles whose engine size is at or below
250 ml at 3 percent and 10 percent for those above 250 ml. The tax
rate for auto tyre will lowered to 3 percent from its current rate
of 10 percent.
The tax rates for distilled spirits will be 20 percent,
reunifying the varied tax rates for liquor made from grain and
those made from potatoes.
The ministry said it will scrap the consumption tax on skin care
and shampoo products as of April 1.
The Ministry of Finance said the plan has been approved by the
Chinese Government and was designed to control and regulate energy
consumption, help protect the environment by reducing consumption
of timber resources, and narrow the gap between the poor and the
rich by collecting a consumption tax on the luxury items.
(Xinhua News Agency March 23, 2006)