Luxury goods in China might soon become even more expensive, as the country might start levying taxes on the increasing number of luxury goods. On May 24, 2013, an official from the top planning agency said that efforts will be taken as part of the country’s efforts to push the economy.
More products will be taxed, which is the country’s tax reform plan for 2013. Kong Jingyuan, director-general of the development of comprehensive reform of the economic system at the National Development and Reform Commission made these remarks when he was answering questions about a guideline with the key tasks to deepen economic reforms in the year 2013.
In the guideline, NDRC states that it will properly modify the rate and scope of consumption taxes. Kong said that the changes will be carried out in terms of rates and structures. He also went on to say that some goods, which have become common in recent times, will also be subject to luxury taxes.
Those luxury goods include cars and yachts. The guideline also states that heavier consumption taxes will be levied on heavy-polluting and excessive-energy consuming products. The move will be taken due to weak inflation and the foreseeable likelihood of China’s central bank keeping interest rates low to increase consumer spending.