Imported vehicle tariff cuts, who is the final winner?
On May 22, 2018, the Ministry of Finance announced that starting July 1, 2018, it will reduce the import duties on vehicles and parts. Tax rates for 135 tax numbers with a full vehicle tax rate of 25% and 4 tax numbers with a tax rate of 20% will be reduced to 15%, and tax rates for auto parts will be 8%, 10%, 15%, 20%, and 25 respectively. The tax rate for all 79 tax numbers of % dropped to 6%...
The duty imposed on imported cars is to protect the Chinese automobile industry as a childish industry, but the price is that Chinese consumers need to pay more renminbi for the same products. China's downward adjustment of tariffs on imported cars is undoubtedly a good thing for Chinese consumers.
According to media reports, imported car data for 2017 show that the proportion of 1.5L-3.0L displacement imported cars in the involved models accounted for nearly 80%. After lowering the tariff, the final price paid by consumers will be reduced by 8% to 15%, and the consumption of imported vehicles will move from the current scale of 1 million to 1.2 million vehicles to 1.5 million to 2 million vehicles.
The US auto exporters, as well as Chinese consumers, are laughing. But one thing that needs to be finalized before the celebration is to celebrate is whether the tariffs have dropped and whether the price of imported cars will eventually fall to consumers.
Before we understand this issue, let’s look at the cost structure of imported cars after they enter the market in other countries, and why it is necessary to sell 400,000 to 500,000 vehicles abroad and enter the Chinese market. Sold to more than 1 million? What is the difference between the two? In addition to customs duties, what other aspects have pushed up the cost of imported cars?
1< Strong>, transportation + insurance fee
This fee item can be understood by anyone listed. The car is a thousand miles awayWhen you come to China from the other side of the ocean, shipping and insurance costs are a huge expense. Before the customs clearance, this part of the cost is called the car's CIF or declaration price.
2. Taxes and duties other than tariffs
In addition to tariffs, it is necessary to import cars from cars to consumers. Paying consumption tax (including environmental taxes), value-added tax, purchase tax, and luxury goods and excise tax. The expenses involved also include non-tax cost payments for all aspects of the supply system.
People who have bought a car know about the purchase tax, which we all know well. For the excise tax, it is determined according to the vehicle's displacement and price. The general rule is that the larger the displacement, the heavier the consumption tax. As for import VAT, 17% did not discuss. It is worth noting that if you buy more than 1.3 million luxury cars, you need to pay 10% of the luxury goods transaction tax on the basis of this tax.
This way, the original 400-50 million imported cars would naturally have doubled in China. Take the BMW 760Li model as an example, the overseas price is 141,200 US dollars (RMB is 970,000 yuan), and the import price to China is 2.66 million RMB! Nearly 3 times the price difference, how spicy eyes.
From above It is known that whether Chinese consumers can finally enjoy the benefits brought by the tariff reduction of imported vehicles still has certain uncertainties. In order to protect the development of the domestic automobile industry, whether the relevant departments will resort to other policies or make some adjustments at any of the above points remains to be further observed.
After all, in the big country game, carrots and sticks have been an effective policy mix.