1.       Taxpayers

Enterprises and individuals who manufacture, entrust other companies to process and import taxable consumer goods are taxpayers of consumption tax.

2.        Tax items

(1) Tobacco: include cigarette, cigar, pipe tobacco;

(2) Alcohol: include white spirit, yellow rice wine, beer, wine, etc.;

(3) High-end cosmetics: include makeup whose sales price (value added tax exclusive) at RMB10 per milliliter or RMB15 per piece (or above);

(4) Precious jewelry and gem: include all kinds of pure gold or silver jewelry and inlaid jewelry which made of gold, silver, platinum, gemstone, pearl, diamond, jade, coral, agate, other metal, artificial stone; all kinds of gem;

(5) Firecrackers and fireworks;

(6) Refined oil product: include gasoline, diesel, naphtha, solvent naphtha, aviation kerosene, lubricating oil, fuel oil;

(7) Automobile: include car, medium and light commercial bus, super luxury car;

(8) Motorcycle: include motorcycles of cylinder capacity over 250 milliliters;

(9) Golf ball and golf equipment: include golf ball, golf clubs, golf bag;

(10) Luxury watch: include all kinds of watches whose unit price (value added tax exclusive) more than RMB10,000;

(11) Yacht: include all kinds of powerboat whose length more than 8 meters and less than 90 meters, mainly used for water sports, recreation and other non-profit activities;

(12) Wooden disposable chopsticks;

(13) Solid wood floor: include solid wood floor, parquet, solid wood veneer, unpainted plain plate;

(14) Battery: include primary battery, accumulator, fuel cell, solar cell, lead accumulator and other batteries;

(15) Coating products.

3.        Tax payment stages

Taxable consumer goods/ Tax payment stage	Manufacturing（import）	Wholesale	Retail
General taxable consumer goods (include alcohol, high-end cosmetics, golf ball and equipment, luxury watch, yacht, refined oil product, wooden disposable chopsticks, solid wood floor, automobile, motorcycle, firecracker and fireworks, battery, coating products)	Consumption tax	-	-
Gold (include platinum), silver and diamond jewelry	-	-	Consumption tax
Cigarette	Consumption tax	Consumption tax	×
Luxury car	Consumption tax	-	Consumption tax

4.       Tax rate

(1)       Proportional tax rate: applicable to most taxable consumer goods, tax rate ranging from 1% to 56%;
(2)       Quota tax rate: only applicable to beer, yellow rice wine and refined oil products;

Beer	Unit tax amount (RMB)
①      Mill price over RMB3,000 per ton	250/ton
②      Mill price less than RMB3,000 per ton	220/ton
③      Self-made beer in entertainment and catering industry	250/ton

(3)      Composite taxation for white spirit and cigarette:

Taxable consumer goods	Taxation stage	Quota tax rate	Proportional tax rate
Cigarette	Manufacturing, consigned processing, import	RMB150/Case RMB0.6/Bar RMB 0.003/Piece	56%（Case price≥RMB70）
			36%（Case price < RMB70）
	Wholesale	RMB 1/Bar RMB250/Case	11%
White spirit	Manufacturing, consigned processing, import	RMB 0.5/500 grams	20%

5.        Calculation for tax payable

Calculation method	Taxation basis	Taxation formula
= 1 \* GB3 ① Proportional taxation	Sales revenue	Tax payable=Sales revenue * Tax rate
= 2 \* GB3 ② Quota taxation	Sales quantity	Tax payable=Sales quantity * Unit tax amount
= 3 \* GB3 ③ Composite taxation	Sales revenue & sales quantity	Tax payable=Sales revenue* Tax rate  + Sales quantity * Unit tax amount

6.        Major exemptions   

(1)      Qualified pure biodiesel is exempted from consumption tax;

(2)      Mercury-free galvanic cell, nickel-metal hydride battery, lithium primary cell, lithium ion battery, solar cell, fuel cell, all-vanadium flow battery is exempted from consumption tax;

(3)      When under construction, coating products with volatile organic matter (VOC) less than 420 kilogram per liter are exempted from consumption tax;

(4)      Under the following circumstances, export consumption tax can be exempted and refunded:

① Foreign trade enterprises with export authorization purchase taxable consumer goods and export directly;

② Foreign trade enterprises are entrusted by other foreign trade enterprises to export taxable consumer goods;

(5)       Under the following circumstances, export consumption tax can be exempted and refunded:

① Manufacturing enterprises with export authorization produce and export taxable consumer goods directly;

② Foreign trade enterprises are entrusted by manufacturing enterprises to export taxable consumer goods.