In December 1993, the State Council promulgated the Provisional Regulations of the peoples Republic of China on consumption tax (hereinafter referred to as the Regulations), stipulating that since January 1, 1994, consumption tax will be levied on some consumer goods such as tobacco, alcohol, gasoline and diesel. In November 2008, according to the previous policy adjustments and reforms of consumption tax, the State Council revised the regulations and implemented them on January 1, 2009. From 1994 to 2018, a total of 10517.6 billion yuan of domestic consumption tax was collected, of which 1063.2 billion yuan was collected in 2018. In accordance with the requirements of adjusting the scope, links and tax rates of consumption tax collection, including high energy consumption, high pollution products and some high-end consumer goods put forward in the decision of the CPC Central Committee on several major issues of comprehensively deepening reform of the Third Plenary Session of the 18th CPC Central Committee, a new round of consumption tax reform was launched in 2014, and a number of reform measures were introduced. These reform measures are changing It has played a positive role in ways, adjusting structure, promoting development and increasing fiscal revenue. At present, the relevant reform requirements of consumption tax have been implemented and the legislative conditions are mature.
The formulation of consumption tax law is conducive to the improvement of the legal system of consumption tax, the enhancement of its scientificity, stability and authority, the construction of a modern financial system to meet the needs of the socialist market economy, the deepening of reform and opening up, and the modernization of national governance system and capacity.
General considerations for the enactment of this Law
(1) to continue the basic system framework of consumption tax and keep the system stable. Since 1994, consumption tax has undergone several major institutional adjustments, including the reform of consumption tax system in 2006, the reform of refined oil tax in 2008, and the new round of consumption tax reform since 2014. After gradual reform and improvement, the framework of the tax system is basically mature, the elements of the tax system are basically reasonable, and the operation is basically stable. Therefore, the draft keeps the current framework of the tax system and the overall level of tax burden unchanged.
(2) the content of the implemented consumption tax reform and policy adjustment shall be reflected in the draft law. In order to fully reflect the results of the reform, and in combination with the current policies and collection and management practices, we will make appropriate adjustments and improvements to the content that does not meet the requirements of economic and social development and reform, and upgrade the regulations into laws. Mainly according to the changes in the collection process, the scope of taxpayers should be adjusted in a unified way; in combination with the reform results, the tax items and tax rates should be supplemented and improved.
(3) to authorize the State Council to adjust the tax rate according to the characteristics of consumption tax regulation. Consumption tax is a kind of regulating tax, which plays an important role in regulating production and consumption behavior. The State Council needs to adjust the consumption tax rate according to factors such as economic development, industrial policies, industrial development and changes in the consumption level of residents. Therefore, the draft set up an authorization clause for the consumption tax rate.
(4) according to the needs of consumption tax reform, set up convergence clauses in the consumption tax law. In accordance with the relevant requirements of the CPC Central Committee and the State Council on improving the local tax system and the reform of the central and local income division, the reform of consumption tax, such as the collection of some consumer goods after the transfer of consumption tax, has been advancing. Considering that these work will continue after the consumption tax legislation, the State Council should be authorized to organize and carry out relevant pilot projects in accordance with the law.
III. main contents of the draft
(1) taxpayers. The regulations of taxpayers in the regulations involve many concepts such as production, entrusted processing, import and sales. With the promotion of the reform of consumption tax, the collection of consumption tax has increased wholesale and retail. Considering that production, wholesale and retail will all have sales behavior, the draft for comments has integrated the relevant concepts, uniformly expressed as the units and individuals that sell, commission processing and import taxable consumer goods in China (article 1), and separately used the situation of consumer goods Expression. (Article 3)
(2) on the object of Taxation and tax rate. The draft for comments continues the practice of the regulations, uses the method of the table of consumption tax items and rates to determine the specific tax objects and rates of consumption tax, and clarifies the terms of authorization for the State Council to adjust tax rates. (Article 2)
(3) calculation of tax payable. The draft for comments continues the current provisions of the regulations. In order to avoid the ambiguity of professional terms, the Regulations stipulates that the consumption tax shall be calculated by the method of ad valorem fixed rate, ad valorem fixed amount, or the method of compound calculation of ad valorem fixed rate and ad valorem fixed amount. The adjustment is expressed as the consumption tax shall be calculated by the method of ad valorem, ad valorem fixed amount, or the method of compound calculation of ad valorem and ad valorem fixed amount Tax payable . (Article 4)
(4) tax price. The draft for comments continues the provisions of the regulations on the separate accounting of sales of taxable consumer goods concurrently operating at different tax rates. (Article 5)
Referring to the internationally accepted concept and the provisions of the price law of the peoples Republic of China, the draft revised the definition of sales volume in the regulations, that is, sales volume refers to the consideration related to the sales of taxable consumer goods obtained by taxpayers, including all monetary or non monetary economic benefits. If the sales amount is calculated in RMB and settled in a currency other than RMB, it shall be converted into RMB. (Article 6)
The draft for comments continues the regulations on the taxable prices of self use taxable consumer goods, commissioned processing taxable consumer goods and imported taxable consumer goods, and provides specific calculation formulas. In order to keep the concept unified, the expressions of self use and production in the regulations are adjusted to self use and sales. (Articles 7, 8 and 9)
(5) the deduction policy. The draft continues the Deduction Policy of the regulations on entrusted processing and recovery of taxable consumer goods. At the same time, according to the current policy, it makes clear the ten deduction policies of purchased taxable consumer goods, involving cigarettes, firecrackers and fireworks, golf balls and ball sets, wooden disposable chopsticks, solid wood floors, refined oil, beer, wine, high-grade cosmetics, etc. for the deduction basis Certificate management is also regulated. (Articles 11, 12 and 13)
(6) tax relief. Combined with the implementation of the current policy, the draft continues the policy of exemption from consumption tax for taxpayers to export taxable consumer goods in the regulations. At the same time, according to the characteristics of consumption tax policy regulation and tax policy practice, it is clear that the State Council can provide for exemption or reduction of consumption tax and report to the Standing Committee of the National Peoples Congress for the record. (Article 14)
(7) the time when the tax obligation occurs. Combined with the practice of tax collection and management, the draft for Soliciting Opinions specifies that the taxable consumer goods produced by the taxpayer shall be taxed when the taxpayer sells them, i.e. when the taxpayer sells the taxable consumer goods, the tax obligation shall occur on the day when the sales payment is received or the sales payment certificate is obtained; when the invoice is issued first, it shall be the day when the invoice is issued. It has supplemented and improved the provisions on the occurrence time of tax obligations related to entrusted processing of taxable consumer goods, self use taxable consumer goods, imported taxable consumer goods, etc. (Article 16)
(8) tax collection and administration. In combination with the practice of tax collection and management, the draft for Soliciting Opinions supplements the approval authority when the taxable amount of taxable consumer goods declared by the taxpayer is obviously low, and increases the customs as the approval department, that is, if the taxable price and quantity of taxable consumer goods declared by the taxpayer are obviously low and have no reasonable business purpose, the tax authorities and customs have the right to verify the taxable price and quantity. (Article 10)
The draft for comments continued the statement of the subject of consumption tax collection in the regulations, and made it clear that the customs should share the information of entrusted consumption tax collection and goods export declaration with the tax authorities. (Article 15)
The draft for comments continues the relevant provisions of the regulations on tax payment place and tax collection management. (Articles 17 and 19)
In order to implement the spirit of deepening the reform of release, management and service, further reduce the frequency of taxpayers tax handling and reduce the burden of taxpayers declaration, the draft for comments cancels the three tax periods of one day, three days and five days, and adds a half year tax period. (Article 18)
In the draft for comments, the article on CO governance of consumption tax was added to clarify that relevant departments need to cooperate with the consumption tax management activities of the tax authorities, strengthen the collection and management of consumption tax, which is conducive to maintaining a healthy and fair legal environment of consumption tax, and also conducive to the smooth implementation of the subsequent reform of consumption tax. Basically consistent with the draft VAT law. (Article 21)
9. Pilot reform of consumption tax. In order to implement the relevant requirements of the CPC Central Committee and the State Council on improving the local tax system and the reform of the division of central and local income, the draft for comments added the statement of implementing the pilot of consumption tax reform, and authorized the State Council to stipulate specific implementation measures, that is, the State Council can implement the pilot of consumption tax reform, adjust the tax items, tax rates and collection links of consumption tax, and submit the pilot scheme to the whole country The Standing Committee of the peoples Congress shall keep the record. (Article 20)
Source: editor in charge of Shanghai Securities News: Zhong Qiming, nf5619