(1) Taxpayers

The taxpayers of Consumption Tax include all enterprises, units, household businesses and other individuals engaged in production or importation of taxable consumer goods within the territory of the People' s Republic of China. The taxable consumer goods exported by the taxpayers are exempt from Consumption Tax, unless the taxable consumer goods are restricted by the State from exportation.

(2) Taxable items and tax rates

Table of Consumption Tax Taxable Items and Rates

(3) Computation of tax payable

The computation of Consumption Tax payable shall follow either the ad valorem principle or quantity-based principle. Generally, the producers of taxable consumer goods are the taxpayers and the Consumption Tax shall be paid on sales of the goods by the producers. The computing formula is:

a. Tax payable = sales amount of taxable consumer goods x Applicable tax rate , or
b. Tax payable = sales volume of taxable consumer goods x Tax amount per unit
Imported taxable consumer goods to which Ad valorem method is applied in computing the tax payable shall be assessed according to the composite assessable price and the applicable rate.