The disadvantages of the system of tax increase for profit-raising after taxation

China’s huge auto consumption group is becoming a plump Tang yak meat.

On August 3, 2011, China's State Administration of Taxation formally published the first draft of the revised "Administrative Measures on the Acquisition of Vehicle Purchase Taxes," which expressly included the three items of "off-price expenses", including fees for additional charges for car sales, decoration and beauty fees, and fare increase. Taxation scope. The paper believes that the three charges outside the purchase price are the most common, and the risk of tax avoidance is high, which is an anti-avoidance category. Therefore, the scope of this purchase tax levy adjustment aims to plug this block of tax loopholes.

This directly put the concern of the whole country to increase the price of car sales to the commanding heights of the policy. Many models that are sought after by the market have become a marketing tool by increasing the sales price at the sales terminal. In order to obtain the maximum benefit, the vehicle manufacturers sell the terminals in terms of additional fees, decorative beauty fees, and fare increase fees. In this process, all policies were ineffective. What is the policy of the State Administration of Taxation?

In response, the Auto Research Institute of the newspaper and the Gasgoo.com conducted a joint investigation. The investigation time was from August 9 to 15, 2011. During the investigation period, 1,674 industry participants participated. The survey results show that 87% of the participants in the survey believe that the fee increase fee is an illegal income from dealers and it is unreasonable to include it in the vehicle purchase tax collection scope. Only 5% of people think that the fare increase is part of the cost of the car and it is a reasonable tax. In the current context of uncertainty, there are also 8% of people who say whether this is reasonable and difficult to identify.

The irresistible benefits have returned to the origin.

At present, with the exception of a few domestically-made hot models, the most fiercely increased price is imported cars. In particular, the increase in the prices of imported luxury cars has become the norm.

How to increase the price of car sales should be a kind of behavior. In this survey, the view of favoring taxation on fare increases tends to be that the sale of a fare increase is itself a market behavior, determined by the market supply and demand situation, and consumers are willing to pay additional premiums, among which the merchant has no means of concealment or fraud. Those who hold opposing views think that "it is a logical departure from the premise of being separated from the legal system, but it is a de facto illegal act."

According to Article 13 of the current "Price Law of the People's Republic of China" (hereinafter referred to as the "Price Law"), "The sales, purchase of goods, and provision of services by business operators shall be clearly stated according to the regulations of the government's price authority, and Names, origins, specifications, grades, pricing units, prices, or items of service, charging standards, etc. Operators may not increase prices outside the list price but may not charge any unspecified charges."

Article 42 also stipulates that: "If a business operator violates the clearly stated price regulations, it shall be ordered to make corrections, and the illegal proceeds shall be confiscated, and a fine of less than 5,000 yuan may be concurrently imposed."

From this, it can be determined that the additional charges imposed by auto dealers on the basis of the original sale pricing to increase the price of car sales in order to reduce the shortage of vehicles have clearly violated the two provisions of the Price Act and disrupted the normal market conditions. The order of prices, and therefore the fee increases for illegal gains by manufacturers, should be confiscated and administrative warnings and fines imposed. However, for some luxury import car manufacturers hundreds of billions or even billions of dollars of fare increases, whether it has severe punishment has not yet made any official statement.

Previously. Consumer rights defending units in 22 cities including Beijing, Shanghai, and Guangzhou issued a joint statement declaring that “sales by price increase” is an illegal act. The industrial and commercial departments in Zhejiang, Shenzhen, and other provinces and cities have also punished and warned dealers in the locality that they had increased their selling prices.

Under the premise that the violation of the sale of the fare increase has already been settled, the State Administration of Taxation unilaterally levies taxes on the portion of illegal income that is clearly stipulated by law. Before other competent authorities have effectively rectified this market activity, such Taxation methods are also not practical.

The hunger, hunger, and thirst of the huge Chinese auto market have spawned various types of profit-seeking techniques.

As far as Chinese local manufacturers are concerned, the hunger marketing first conducted by Guangqi Honda has opened the door to increase sales of local products. Since then, Volkswagen, Toyota, Honda and other joint ventures in China have all chosen this trick. In the survey, 28% of participants believe that hunger marketing of vehicle manufacturers plays an important role in increase sales.

At the same time, some imported car dealers often adopt more conservative “order-style sales” in order to reduce inventory pressure and risks. Under the acquiescence of the manufacturer when one eye closes one eye, the distributor seizes this consumer psychology of low consumer price sensitivity and wants to mention the car as soon as possible, artificially raising the fare, and gradually forming the unspoken rules of the industry.

Since the advent of fare increases, there has been no effective rectification, and the absence of relevant laws and regulations and supporting industrial policies has become evil. According to 34% of participants, the system design of the "Automotive Brand Management Implementation Measures" directly led to the monopoly of imported companies, which directly led to the frequent increase in the price of imported vehicles.

In fact, the “Implementation Measures for Automobile Sales Brand Management” has been criticized for its absolute dumping of manufacturers since its implementation. According to the "Regulations" of the relevant provisions, foreign vehicle companies in China can set up an independent car sales company, and authorized its wholly-owned sales company to do its product's total distributor, while prohibiting other domestic distributors of parallel imports of their products. As a result, foreign OEMs can directly or indirectly monopolize the import vehicle marketing network through their distributors. Under the temptation of lucrative revenues, through the monopoly of channels and car sources, it will be difficult for some of the popular imported vehicles. In the name of the market supply and demand of the implementation of fare increase sales.

Nearly 90% of the people surveyed believe that before the system changes, the increase in sales will not disappear.