CHINA TAXATION SYSTEM
Consumption Tax
(1) Taxpayers
The taxpayers of Consumption Tax include all enterprises,
units, household businesses and other individuals engaged
in production or importation of taxable consumer goods within
the territory of the People' s Republic of China. The taxable
consumer goods exported by the taxpayers are exempt from Consumption
Tax, unless the taxable consumer goods are restricted by the
State from exportation.
(2) Taxable items and tax rates
Table of Consumption Tax Taxable Items and Rates
| Taxable items |
Tax rates (tax amount) |
Comments |
| 1. Tobacco (1) Grade A Cigarettes (2) Grade
B Cigarettes (3) Grade C Cigarettes (4) Cigars (5) Cut
tobacco |
50% 40% 25% 25% 30% |
|
2. Alcoholic drinks and alcohol
(1) white
spirits made from cereal
(2) white spirits made from potatoes
(3) yellow spirits
(4) beer
(5) other alcoholic drinks
(6) alcohol |
25% 15% 240 yuan per tonne 220 yuan per tonne 10% 5%
|
|
| 3. Cosmetics |
30% |
|
| 4. Skin-care and hair-care products |
8% |
Perfumed soap currently taxed at 5% |
5. Precious jewellery, pearls, precious
jade and stones
(1) Gold and silver jewellery
(2) Other
jewellery, pearls, precious jade and stones |
5% 10% |
|
| 6. Firecrackers and Fireworks |
15% |
|
| 7. Gasoline (1) Unleaded (2) Leaded |
0.2 yuan per litre 0.28 yuan per litre |
|
| 8. Diesel |
0.1 yuan per litre |
|
| 9. Motor Vehicle Tyres |
10% |
|
| 10. Motor-cycles |
10% |
|
| 11. Motor cars |
3%,5%,8% |
Rate applied on the basis of the type and cylinder capacity
of the car |
(3) Computation of tax payable
The computation of Consumption Tax payable shall follow either
the ad valorem principle or quantity-based principle. Generally,
the producers of taxable consumer goods are the taxpayers
and the Consumption Tax shall be paid on sales of the goods
by the producers. The computing formula is:
a. Tax payable =sales amount of taxable consumer goods ×
Applicable tax rate , or
b. Tax payable = sales volume of taxable consumer goods ×
Tax amount per unit
Imported taxable consumer goods to which Ad valorem method
is applied in computing the tax payable shall be assessed
according to the composite assessable price and the applicable
rate.
|
