Liquor Consumption Tax Adjustment Rumors Stirred People's Hearts Are High-end Liquor Price Hike

Although Spirit Excise tax adjustment is a foregone conclusion

, but the liquor tax on the adjustment program, but has suddenly given birth to two versions. Version of that moment 20% of the ad valorem tax rate has not changed, because changes in the tax base for the liquor charge, coupled with an increase of tax, liquor tax will be turned over to the corresponding double than before. Another version is that the premium of 400% of national tax approval, premium 200% approval by the local Provincial Tax. Such as the adjustment program based on the former, the liquor will be greatly reduced performance of listed companies is bound to trigger a new round of industry shuffling; and if the basis for the latter, including manufacturers, institutional investors, including parties for liquor consumption tax hike is no doubt and trepidation of the heart can smooth down.

White plate can be smoothly through the robbery, again became the focus.

Two distinct versions of Months pending liquor consumption tax adjustment, has once again stirred people's hearts.

According to a Beijing press reports, liquor consumption tax increase is ready to fly. State Administration of Taxation is likely to be made and announced this month, around 23 the adjustment programs implemented early in July. In addition, the amount of liquor industry will increase the tax. "20% ad valorem rates have not changed, but for liquor collection of the tax base changes, the project increased the tax, liquor tax and handed in before the corresponding double compared to."

The report said, the message from a related liquor company executives. According to the senior said, "20% ad valorem tax rate has not changed, but the charge for the liquor tax base has changed, the project increased the tax, liquor tax paid accordingly doubled compared with before."

The report that the consumption tax adjustment by the impact of Maotai , Wuliangye (000,858, stock it), Shuijingfang (600,779, stock it) and other brewing companies also raise ex-factory price, time, high-grade liquor or to trigger a new round of Prices Tide.

Such as adjustment programs implemented in accordance with the above, liquor greatly reduced performance of listed companies is bound to, or trigger a new round of industry shuffling; legitimate funds, brokerage firms and some manufacturers to verify the statement running when, coincidentally, another seemingly made the same The argument has surfaced Zaozao.

The release said, the program only covers the adjustment of premium 200% -400% of the liquor. Which reached more than 400% approval by the State Administration of Taxation, 200% premium over the provincial Administration of Taxation for approval.

Learned that the version of the large liquor companies from other documents in the possession, but the file in the spread between domestic large fund companies. A fund researcher yesterday confirmed the statement to reporters.

"To Maotai, for example, the current ex-factory prices Maotai 439 yuan, while the terminal limit of 700 yuan." Guoxin Securities analyst Astragalus yesterday that if the State Administration of Taxation in accordance with the final "premium of 200% -400%" program adjustments will only involve a small number of niche products, the company's performance will not be affected.

Adjustment why does it affect people? Why

liquor tax adjustments affect people? Standard from the start with our current tax. At present, China liquor consumption tax, including the ad valorem tax rate of 20% and 0.5 yuan / kg from the amount of tax.

"As the tobacco industry, not the State encourage the development of the health industry, so heavily taxed." In Guangdong Province Alcohol Association spokesman told reporters that, while the 0.5 yuan / kg from the amount of taxes that is the starting point in order to avoid corporate tax evasion. "But relatively speaking, from the amount of tax on low-end liquor is obvious, but for the high margin high-end liquor manufacturers minimal impact."

Furthermore, for ad valorem tax rate of 20%, large enterprises have no lack of wine measures. As the liquor consumption tax to take a large part of the ad valorem levy in production, but also heavier tax burden (white and Wine Were 20% and 10%), so that the liquor companies have set up sales companies to reduce the nominal ex-factory approach to tax avoidance.

But in 2009 Financial Crisis makes it significantly reduced revenues, strengthen tax collection and a revenue budget for completion in 2009 the first choice.

Maotai prices crept back However, before the promulgation of the final program, the impact on the industry is still inconclusive. But even if revenue from tight on the liquor industry, the impact remains to be seen.

Case of price increases. Since June, the major price increase high-end liquor products continued rumors. The rumored price of the boys and girls, more dealers and institutional investors from around the world. To Maotai, for example, reporters yesterday in Guangzhou, Shenzhen, the two dealers know, after briefly falling below the 560 yuan price Maotai group has generally rebounded to more than 610 yuan. This call prices rebounded mainly from the manufacturers control volume and price increase rumors, Guangzhou-Shenzhen-dealer admitted to reporters rumors price increases, but the manufacturer has not received an official price increase notification. If at the end of tax

tight, it will lead to chain reactions of high-end liquor price increase?

"The expected price increases should be decided by supply and demand, rather than adjust tax. Although a lot of market speculation on prices, including prices Maotai a while ago, but only for institutions and dealers in promoting enterprise and is not this position. "liquor in a related yesterday to the reporters always be honest with corporate executives, a key factor in determining prices still on the extent of economic recovery.

POST COMMENT

Luggage IRS Back Taxes If an IRS tax consultant is required A Tax Consultant Do you agree with the IRS, without being Why should you give up these tax deductions Avoid capital gains tax by donating property to a charity Car Donation Tax deduction Gift Tax – What are the gifts of a tax exemption? Another Year End Tax Planning Tip To Avoid With the the year 2010 NFL Draft inside books Social Security Tax Holiday For Retirees Exploring Panama City and its Tax Regulations Lee Byers British Offshore Tax Haven Update A Brief Account Of Nfl History