Study of Chinese Luxury Import Tax Revenue-Taking Luxury Bags for Example

Abstract

With the continuously fast development of China’s economy, as well as significant personal average gross domestic product (GDP) elevation, Chinese people are consuming more and more luxuries nowadays. Although the world economy is taking a downturn due to financial crisis, luxury consuming in China keeps increasing in recent years. However, lots of issues still exist although the luxury consuming market may look prosperous in China, and two of the examples are tax fraud behavior and too much luxury consuming abroad. This paper speaks to problems and issues existed in luxury import with the method of real example analysis and standard analysis, taking luxury bags as an example. Then analyses the tax fraud problem with luxury bag import, and comes with solutions to address those issues. These suggestions include increasing the custom tax inspection frequency and decreasing the import rate of luxury bags.