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General discussion on levying consumption tax policy in commercial automotive industry

November 22, 2022

Zhang Xiaokai: It is baffling to impose a consumption tax on passenger cars.

At the time of the consumption tax reform, we hope that the consumption tax can be reduced. As a result, the new consumption tax rate does not reduce the number of small-displacement vehicles. Instead, it increases the number of large-displacement vehicles. On the whole, the consumption tax burden on the automotive industry is even heavier. As a means of production, light passengers and Chinese passengers have previously been largely tax-free, and now they do not want to let go. This is simply baffling.

For now, the taxation of the auto industry is too heavy. A car must pay the value-added tax that all industries must pay, but also pay the consumption tax; in addition, there are purchase surcharges, for how many years, it should be canceled, but now the 10% surcharge is no less . Vehicle purchase surcharges are originally products of the planned economy and may not be cancelled with economic development. However, oil prices have been rising, third-party liability insurance is also rising, there are so many road maintenance fees, bridge tolls. To say that it is necessary to levy a fuel tax, it has been calling for so many years and it has not been implemented.

When the consumption tax was just implemented, it was called "Special Consumption Tax." Why was it necessary to collect passenger cars? Because the rich can ride a car, how can ordinary people sit? The car was bought by the rich, so it was a levy. Why did we have to levy light buses at the time? Because passenger cars are also sitting people, can still have money to ride a car Well, no money does not walk? Cars and passenger cars are special consumer goods, so they have to collect special consumption tax. This was the "official" reason given by the relevant authorities at that time. But now, is the car a rich person to sit? Is it possible for China and Pakistan to be seated only by rich people? Is it that people who don’t have money can only walk and cannot ride? !

Moreover, many other industries are levying excise duties on consumption. Why does the automobile impose excise taxes on production? How can levying consumption tax in the production process encourage the development of small-displacement vehicles? Because the auto consumption tax is paid by manufacturers, how can consumers feel it?



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Mr. Liu Keda

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Author:

Mr. Liu Keda

이메일:

syzdhx@163.com

Phone/WhatsApp:

+8613904003748

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