(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 x Applicable tax rate , or
b. Tax payable = sales volume of taxable consumer goods x 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.
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