Liquor consumption tax is a false alarm in liquor industry

category:Finance
 Liquor consumption tax is a false alarm in liquor industry


The consumption tax rate of alcohol remains unchanged

On December 3, nearly two months after the State Council issued the relevant tax adjustment and reform promotion plan, the Ministry of Finance issued the consumption tax law of the peoples Republic of China (Draft for comments) on December 3. The consumption tax rate table published together shows that liquor is taxed in the production (import) link, and the tax rate is 20% plus 0.5 yuan / 500g (or 500ml).

For a time, the liquor with unlimited scenery has become the focus again in the past two years, and the consumption tax consultation, liquor taxation and other industries have become hot spots. Under the comments of microblog, some netizens pointed out that the reason for the sharp drop of liquor has been found.

However, after checking the tax information and asking the professionals, the reporter of securities times u00b7 e company found that the tax rate of liquor has not changed, that is to say, in the draft of consumption tax consultation published this time, liquor has not been taxed. To this end, China Wine Industry Association also issued a special document to point out that alcohol consumption tax maintains the original tax rate unchanged.

On the Internet, there is also a reversal of the speech on liquor taxation. Immediately, a netizen said: after the draft, there was no change in the tax rate of liquor and the previous tax rate. It was more to promote the work of tax law. For liquor, it was a bad thing.

According to the relevant information, Chinas liquor consumption tax started in 1994, and was initially levied at ad valorem rate, and it was divided into grain liquor tax rate (25%) and potato liquor tax rate (15%). In 2001, the combination of ad valorem rate and ad valorem rate was implemented. In 2006, the differential tax rate of grain liquor and potato liquor was cancelled, and the ad valorem was adjusted to 20%, and the ad valorem was still paid at 1 yuan per kilogram. In 2009, the minimum tax price of liquor consumption tax was defined. In 2017, the collection and management of liquor consumption tax was further strengthened. The proportion of the minimum tax price was adjusted from 50% to 70% before to 60%.

Therefore, since May 2017, liquor consumption tax has been paid in accordance with ad valorem tax is calculated by 20% of the production link price (the lowest tax price is 60% of the external sales price of the last level of sales unit), and ad valorem tax is calculated by 1 yuan per kilogram of sales volume. It is consistent with the content of this draft, but in the form of consumption tax rate and tax items released by the Ministry of finance, there is no specific tax base problem. For this reason, an analyst of a liquor industry pointed out that the tax rate has not changed, it depends on the interpretation and identification of the tax base.

Good for the whole liquor industry

In recent days, the fever abatement of liquor sector is obvious, among which the stock price of Moutai in Guizhou Province has dropped 9.20% in eight trading days since November 22, and the market value has dropped by 100 billion yuan, which is of particular concern. Guohai Securities said that the decline of the overall liquor sector was related to recent news that the draft for comment on the consumption tax law is expected to be released by the end of the year.

At the beginning of October this year, when the State Council issued the plan to promote the reform of the central and local income division after the implementation of a larger scale of tax cut and fee reduction, liquor was considered to be the industry that took the lead after consumption tax. In October 10th, the share price of A shares fell.

Fang Zhengs food and beverage team pointed out that the consumption tax rate of white wine was basically the same as before - 20% of the ad valorem and 50% of the ad valorem. The tax rate that everyone worried about before had to be adjusted and collected from the sales side did not appear. The introduction of the consumption tax plan was a formal solution to the markets concerns.

The team of Tianfeng business agency commented that the clarification of liquor consumption tax collection in the draft will effectively dispel investors doubts. Prior to this, the State Council issued the plan to promote the reform of the central and local income division after the implementation of a larger scale of tax reduction and fee reduction. It put forward that under the premise of controllable collection and management, the existing items of consumption tax levied in production (import) links will be gradually transferred to wholesale or retail ring sections to expand local income sources and guide local improvement of consumption environment. Investors worry that the shift of consumption tax will increase the overall consumption tax burden of the liquor industry, and the top liquor companies will be relatively strong, and the tax burden will be borne by more channels.

After the implementation of the consumption tax policy, Xiao Zhuqing, an expert in the liquor industry, said, this is good for the whole liquor industry. Previously, it was expected that the tax of the liquor industry would be moved to the consumer end. The premium capacity of the first-line liquor enterprises is high and the impact is not significant, but the regional liquor enterprises have no premium capacity. The days will be very difficult. Now it remains unchanged, and the regional liquor enterprises can take a breath

Moderate price rise at the end of the year

In addition to the impact of consumption tax expectations, Guohai Securities said it was also related to the expectation that Maotai would not raise its price at the end of the year.

Wang Hua, vice president of quality and Safety Promotion Association of Chinas food and drug enterprises, clearly pointed out that during the Spring Festival this year, the price of Maotai liquor will not rise in China.

At the same time that the market price of Maotai goes up all the way in 2019, the voice of raising the price of Maotai has not stopped, and Maotai has also said on many occasions that it will not raise the price in a short time or for a period of time. However, the voice of such certainty about the price rise of Maotai still appears for the first time, but the time is only limited before the Spring Festival.

On the other hand, although Maotai has not raised its price, other liquors have experienced two rounds of price hikes this year. In the first half of this year, the liquor enterprises represented by Wuliangye, Luzhou Laojiao, Yanghe Co., Ltd. took measures such as stopping and raising prices to push up the market prices of high-end products. In recent years, the regional liquor industry has carried out the second wave of moderate price increase this year.

After entering November, Luzhou Laojiao, Shuijingfang, Jiannanchun, JiuGuiJiu, etc. have successively issued price raising notices. In particular, Luzhou Laojiao announced the price increase of Guojiao 1573 series products just last month, and announced the price adjustment of Guojiao 1573 series again on December 2.

The reporter found that compared with the previous round of liquor price increase, the increase was obviously moderate. Compared with the previous round of liquor price increase of about 100 yuan, the price increase was more than 60 yuan. For example, the price adjustment range of different styles of Luzhou Laojiao was between 20 yuan and 50 yuan, and that of Shuijingfang was between 20 yuan and 60 yuan. In addition, in addition to the planned quota price increase proposed by Luzhou Laojiao, other liquor companies only raised the terminal suggested retail price. Liu Xiaowei, an expert in liquor industry, thinks that the bottom gas of the price rise of liquor enterprises is insufficient. According to the market situation of some liquor related markets, the retail price of the terminal did not immediately follow the rise after the announcement of the price rise. China Merchants Securities also said in the research report that Guojiao 1573s price increase policy launched three consecutive adjustments. In combination with the companys Spring Festival policy in the past two years and the earlier factors of next years Spring Festival, it is expected that the company will stimulate dealers to make payments through price increases, in order to cooperate with higher costs to make a breakthrough. Cai Xuefei, an expert in liquor industry, previously pointed out that the price increase of liquor near the Spring Festival aims to increase the brand image and price share when the price of first-line liquor has been basically upgraded. Source: responsible editor of Securities Times: Yang bin_nf4368

The reporter found that compared with the previous round of liquor price increase, the increase was obviously moderate. Compared with the previous round of liquor price increase of about 100 yuan, the price increase was more than 60 yuan. For example, the price adjustment range of different styles of Luzhou Laojiao was between 20 yuan and 50 yuan, and that of Shuijingfang was between 20 yuan and 60 yuan. In addition, in addition to the planned quota price increase proposed by Luzhou Laojiao, other liquor companies only raised the terminal suggested retail price.

Liu Xiaowei, an expert in liquor industry, thinks that the bottom gas of the price rise of liquor enterprises is insufficient. According to the market situation of some liquor related markets, the retail price of the terminal did not immediately follow the rise after the announcement of the price rise.

China Merchants Securities also said in the research report that Guojiao 1573s price increase policy launched three consecutive adjustments. In combination with the companys Spring Festival policy in the past two years and the earlier factors of next years Spring Festival, it is expected that the company will stimulate dealers to make payments through price increases, in order to cooperate with higher costs to make a breakthrough. Cai Xuefei, an expert in liquor industry, previously pointed out that the price increase of liquor near the Spring Festival aims to increase the brand image and price share when the price of first-line liquor has been basically upgraded.