Daily Tax Report ®

New China Consumption Tax Plan to Hurt Small Liquor Firms: CICC

Oct. 10, 2019, 7:54 AM

China’s State Council has issued a new plan regarding cuts to consumption taxes and fees, and it will hurt mid- to small-sized baijiu firms the most, CICC says.

  • The plan, which includes postponing the collection of consumption tax, will add to alcohol companies’ tax burden, analysts including Xing Tingzhi in a note.
  • The plan states that consumption tax collected at the production stage for some goods will be postponed and collected at the wholesale or retail stage.
  • It will weaken the competitiveness of small and mid-sized regional firms and those with irregular tax payments.
  • There’ll be a larger impact on...
To read the full article log in. To learn more about a subscription click here.