Provisions on Some Specific Issues Concerning Consumption Tax

GSF [1993] No. 156
1. Standards for Classifying Cigarette Tax assessments
1 If the cigarettes sold by the taxpayers undergo frequent price fluctuations due to the liberalization of their selling prices the tax categories and applicable tax rates shall be determined according to the weighted average selling prices of the cigarettes of the same brands and specifications sold in the month. However the cigarettes sold shall not be included into the weighted average calculation in one of the following cases
A. The selling prices are obviously low for no proper reasons
B. There are no selling prices.
In practice the taxpayers can make advance tax payment for the cigarettes sold at the beginning of a month according to the tax categories and applicable tax rates of the previous month or the month most recent to the selling month. At the end of the month they can use the actual selling prices to determine the tax categories and applicable tax rates and settle the tax payable for the month.
2 If the selling prices of the cigarettes become higher due to the addition of filter tips the change of package or other reasons the tax categories and applicable tax rates shall be determined according to the new selling prices.
3 For the cigarettes produced by the taxpayers for self use they shall determine the tax categories and applicable tax rates according to the selling prices of the cigarettes of the same brands and specifications produced by the taxpayers. If there are no selling prices for the cigarettes of the same brands and specifications such cigarettes shall all be taxed according to the tax rates for grade-A cigarettes.
4 The cigarettes processed on consignment shall be taxed according to the tax categories and applicable tax rates of the cigarettes of the same brands and specifications of the consignees. If there are no cigarettes of the same brands and specifications such cigarettes shall be taxed according to the tax rates for grade-A cigarettes.
5 The applicable tax rates for defective or inferior cigarettes shall be determined according to the tax categories for the standard cigarettes of the same brands and specifications.
6 The following cigarettes irrespective of their tax categories shall all be taxed according to the tax rates for grade-A cigarettes
A. Imported cigarettes
B. Unmarked cigarettes
C. Hand-made cigarettes
D. The cigarettes produced by the enterprises and individuals that have not been approved by the State Council to be included into the national plan. The list of the cigarette-producing enterprises that have been included into the national plan is attached.
7 Any adjustment of the standards for classifying the cigarette tax assessment shall be determined by the State Administration of Taxation.
2. Scope of Tax Collection for Alcoholic Drinks
1 The applicable tax rates for the liquors produced with purchased alcohol shall be determined according to the raw materials used for alcohol production. If the raw materials for alcohol production cannot be determined the liquors shall be taxed according to the tax rates for grain spirit.
2 The liquors produced with two or more kinds of purchased alcohol shall all be taxed according to the highest tax rate for the kind of alcohol.
3 For the liquors produced by adding liquid to purchased liquors to reduce the degree of alcohol or sold by bottling the bulk-purchased liquors or produced by using leaven and essence to scent or flavor the purchased liquors the applicable tax rates shall be determined according to the raw materials used for the purchased liquors. If the raw materials used for the purchased liquors cannot be determined all the above liquors shall be taxed according to the tax rates for grain spirit.
4 The liquors produced by blending different types of purchased liquors shall all be taxed according to the tax rates for grain spirit.
5 The liquors produced by blending grains potatos bran and other raw materials shall all be taxed according to the tax rates of grain spirit.
6 The liquors produced by blending the raw materials other than potatos and grains shall all be taxed according to the tax rates for potato spirit.
3. Basis for Tax assessment
1 If the taxpayers sell category-A cigarettes and grain spirit and their prices for tax assessment are obviously lower than the retail prices at the places of production the competent authorities shall report level by level to the State Administration of Taxation for determining the prices for tax assessment and shall levy tax according to the prices for tax assessment determined by the State Administration of Taxation.
The methods for determining the prices for tax assessment of grade-A cigarettes and grain spirit are specified separately.
2 In accordance with the provisions of Article 17 of the Rules for Implementing the Provisional Regulations of the People's Republic of China on Consumption Tax the national average cost-profit ratios for the taxable consumer goods are as follows
A. Grade A cigarettes 10%
B. Grade B cigarettes 5%
C. Cigars 5%
D. Cut tobacco 5%
E. Liquors made from grains 10%
F. Liquors made from potatos 5%
G. Other alcoholic drinks 5%
H. Alcohol 5%
I. Cosmetics 5%
J. Skin-care and hair-care products 5%
K. Firecrackers and fireworks 5%
L. Precious jewelry and stones 6%
M. Motor vehicle tires 5%
N. Motorcycles 6%
O. Cars 8%
P. Cross-country vehicles 6%
Q. Minibuses and vans 5%
3 The consumption tax for the following taxable consumer goods may be levied by taking the remainder of the sales amounts minus the purchasing prices of the taxed purchased consumer goods as the price for tax assessment.
A. Cigarettes produced with the taxed purchased cut tobacco
B. Alcoholic drinks produced with the taxed purchased alcoholic drinks and alcohol including the liquors produced by adding liquid to the taxed purchased liquors to reduce their alcoholic contents by blending different types of taxed purchased liquors by using leaven and essence to scent or flavor the taxed purchased liquors and by bottling the taxed bulk-purchased liquors
C. Cosmetics made from taxed purchased cosmetics
D. Skin-care and hair-care products made from taxed purchased skin- care and hair care products
E. Precious jewelry and stones made from taxed purchased precious stones
F. Firecrackers and fireworks made from taxed purchased firecrackers and fireworks.
The purchasing prices of the taxed purchased consumer goods refer to the selling prices indicated on the purchase invoices excluding the amount of value-added tax
4 For the following taxable consumer goods the consumption tax paid for their raw materials may be deducted from their taxable consumption tax
A. Cigarettes produced with the taxed cut tobacco received from consigned processing as the raw materials
B. Alcoholic drinks produced with the taxed alcoholic drinks and alcohol received from consigned processing as the raw materials
C. Cosmetics produced with the taxed cosmetics received from consigned processing as the raw materials
D. Skin-care and hair-care products with the taxed skin-care and hair-care products received from consigned processing as the raw materials
E. Precious jewelry and stones produced with the taxed jewelry and stones received from consigned processing as the raw materials
G. Firecrackers and fireworks produced with the taxed firecrackers and fireworks received from consigned processing as the raw materials.
The paid consumption tax refers to the consumption tax withheld and paid by the consignees for the taxable consumer goods consigned for processing.
5 If the taxpayers sell self-produced taxable consumer goods through their own non-independent accounting sales outlets they shall pay the consumption tax according to the sales volume or sales amount of their sales outlets.
6 If the taxpayers use the taxable consumer goods to exchange for means of production and means of consumption to invest in shares or to offset debts the highest selling prices of the same types of the taxable consumer goods of the taxpayers shall be used as the basis for consumption tax assessment.
4. Places of Tax Payment
In accordance with the provisions of Article 25 of the Rules for Implementing the Provisional Regulations of the People's Republic of China on Consumption Tax the taxpayers which have head offices and branch offices in different provinces autonomous regions or municipalities directly under the central government must receive the approval of the State Administration of Taxation if they want the head offices to consolidate the taxes and pay them at the places where the head offices are located. The taxpayers which have head offices and branch offices in the same provinces autonomous regions or municipalities directly under the central government but in different counties or cities must receive the approval of the local branch bureaus of the State Administration of Taxation if they want the head offices to consolidate the taxes and pay them at the places where the head offices are located.
5. Tax Report and Payment
The method for taxpayers to report and pay taxes shall be chosen from one of the following methods by the local competent tax authorities in light of the practical conditions
1 The taxpayers file the tax return to the tax authorities on a regular basis and complete the tax paying-in warrants and pay the taxes to the local banks that act as the treasury agents.
2 The taxpayers file the tax return to the tax authorities on a regular basis and pay the taxes as scheduled after the tax authorities examined the tax return and issued the paying-in warrants.
3 With regard to the small businesses without sound accounting systems the tax authorities may set their payable taxes on a quarterly or annual basis in light of the conditions of their production and sales and the taxes are paid on a monthly basis.
6. The Provisions enters into force on January 1 1994.
List of Cigarette-Producing Enterprises Included into National Plan
Beijing Cigarette Factory
Tianjin Cigarette Factory
Shijiazhuang Cigarette Factory
Baoding Cigarette Factory
Zhangjiakou Cigarette Factory
Taiyuan Cigarette Factory
Quwo Cigarette Factory
Huhhot Cigarette Factory
Ulaanhot Cigarette Factory
Shenyang Cigarette Factory
Yingkou Cigarette Factory
Jinzhou Cigarette Factory
Xiuyan Cigar Factory
Changchun Cigarette Factory
Siping Cigarette Factory
Yanji Cigarette Factory
Harbin Cigarette Factory
Suihua Cigarette Factory
Fujin Cigarette Factory
Luohe Cigarette Factory
Anyang Cigarette Factory
Xinxiang Cigarette Factory
Kaifeng Cigarette Factory
Shangqiu Cigarette Factory
Luoyang Cigarette Factory
Nanyang Cigarette Factory
Zhengzhou Cigarette Factory
Huaibin Cigarette Factory
Ruzhou Cigarette Factory
Guangshan Cigarette Factory
Dancheng Cigar Factory
Wuhan Cigarette Factory
Xiangfan Cigarette Factory
Zaoyang Cigarette Factory
Guangshui Cigarette Factory
Hong'an Cigarette Factory
Dangyang Cigarette Factory
Lichuan Cigarette Factory
Chongqing Cigarette Factory
Guiyang Cigarette Factory
Zunyi Cigarette Factory
Guiding Cigarette Factory
Bijie Cigarette Factory
Qingsong Cigarette Factory
Huangping Cigarette Factory
Tongren Cigar Factory
Guiding Cigarette Factory
Branch of Kunming Cigarette Factory
Yuxi Cigarette Factory
Qujing Cigarette Factory
Zhaotong Cigarette Factory
Chuxiong Cigarette Factory
Dali Cigarette Factory
Honghe Cigarette Factory
Huize Cigarette Factory
Suijiang Cigar Factory
Baoji Cigarette Factory
Hailin Cigarette Factory
Linkou Cigarette Factory
Muleng Cigar Factory
Shanghai Cigarette Factory
Nanjing Cigarette Factory
Xuzhou Cigarette Factory
Huaiyin Cigarette Factory
Hangzhou Cigarette Factory
Ningbo Cigarette Factory
Jiaxing Cigarette Factory
Hefei Cigarette Factory
Bengbu Cigarette Factory
Wuhu Cigarette Factory
Fuyang Cigarette Factory
Chuzhou Cigarette Factory
Bozhou Cigarette Factory
Dangshan Cigarette Factory
Mengcheng Cigar Factory
Xiamen Cigarette Factory
Longyan Cigarette Factory
Laifeng Cigarette Factory
Sanxia Cigarette Factory
Jiangling Cigar Factory
Jianshi Cigar Factory
Wuhan Cigarette Factory
Xianning Branch
Changsha Cigarette Factory
Changde Cigarette Factory
Chenzhou Cigarette Factory
Lingling Cigarette Factory
Longshan Cigarette Factory
Xinhuang Cigarette Factory
Qidong Cigarette Factory
Xinshao Cigarette Factory Fenghuang Cigar Factory
Guangzhou No. 1 Cigarette Factory
Guangzhou No. 2 Cigarette Factory
Shaoguan Cigarette Factory
Meizhou Cigarette Factory
Zhanjiang Cigarette Factory
Shenzhen Cigarette Factory
Yan'an Cigarette Factory
Xianyang Cigarette Factory
Chengcheng Cigarette Factory
Xunyang Cigar Factory
No. 1 Branch of Hanzhong Cigarette Factory
Lanzhou Cigarette Factory
Tianshui Cigarette Factory
Qingyang Cigarette Factory
Heshui Cigar Factory
Wuzhong Cigarette Factory
Ledu Cigarette Factory
Xinjiang Cigarette Factory
Branch of Kunming Cigarette Factory
Sunwu Cigarette Factory
Longyan Cigarette Factory
Yongding Branch
Guangfeng Cigarette Factory
Jinggangshan Cigarette Factory
Gannan Cigarette Factory
Xingguo Branch
Dancheng Cigar Factory
Zhoukou Cigarette Branch Factory
Yunxiao Cigarette Factory
Sheshan Cigarette Factory
Quanzhou Cigarette Factory
China American Cigarette Co. Ltd.
Nanchang Cigarette Factory
Gannan Cigarette Factory
Jinan Cigarette Factory
Qingdao Cigarette Factory
Qingzhou Cigarette Factory
Dezhou Cigarette Factory
Heze Cigarette Factory
Yantai Cigarette Factory
Tengzhou Cigarette Factory
Linqing Cigarette Factory
Yishui Cigarette Factory
Yanzhou Cigar Factory
Shandong-Rothmans Tobacco Co. Ltd.
Zhengzhou Cigarette Factory
Nanxiong Cigarette Factory
Nanhai Cigarette Factory
Nanning Cigarette Factory
Liuzhou Cigarette Factory
Yulin Cigarette Factory
Wuming Cigarette Factory
Zhongshan Cigarette Factory
Branch of Yulin Cigarette Factory
Zhongshan Cigarette Factory
Fuchuan Branch
Hainan Cigarette Factory
Chengdu Cigarette Factory
Sichuan Cigarette Factory
Shifang Cigarette Factory
Mianyang Cigarette Factory
Xichang Cigarette Factory
Fuling Cigarette Factory
Qianjiang Cigarette Factory
Wushan Cigarette Factory
Zhongshan Cigar Factory
Xianfeng Cigarette Factory
Dawu Cigarette Factory
Xunyang Cigarette Factory
Changyang Branch of Dangyang Cigarette Factory
Longhui Cigarette Factory
Sangzhi Cigarette Factory
Yongshun Cigarette Factory
Xintian Branch of Lingling Cigarette Factory
Xinzheng Cigarette Factory
Xuchang Cigarette Factory
Zhumadian Cigarette Factory
Peng'an Cigar Factory
Shifang Guangming Cigar Factory
Zhulin Cigarette Factory
Branch of Guilin Cigarette Factory
Liupanshui Cigarette Factory
Yibin Cigarette Factory
Luzhou Cigarette Factory
Wuling Cigarette Factory
Xingyi Cigarette Factory

List of Cigarette-Producing Enterprises Included into National Plan
Beijing Cigarette Factory	Tianjin Cigarette Factory	Shijiazhuang Cigarette Factory	Baoding Cigarette Factory
Zhangjiakou Cigarette Factory	Taiyuan Cigarette Factory	Quwo Cigarette Factory	Huhhot Cigarette Factory
Ulaanhot Cigarette Factory	Shenyang Cigarette Factory	Yingkou Cigarette Factory	Jinzhou Cigarette Factory
Xiuyan Cigar Factory	Changchun Cigarette Factory	Siping Cigarette Factory	Yanji Cigarette Factory
Harbin Cigarette Factory	Suihua Cigarette Factory	Fujin Cigarette Factory	Luohe Cigarette Factory
Anyang Cigarette Factory	Xinxiang Cigarette Factory	Kaifeng Cigarette Factory	Shangqiu Cigarette Factory
Luoyang Cigarette Factory	Nanyang Cigarette Factory	Zhengzhou Cigarette Factory	Huaibin Cigarette Factory
Ruzhou Cigarette Factory	Guangshan Cigarette Factory	Dancheng Cigar Factory	Wuhan Cigarette Factory
Xiangfan Cigarette Factory	Zaoyang Cigarette Factory	Guangshui Cigarette Factory	Hong an Cigarette Factory
Dangyang Cigarette Factory	Lichuan Cigarette Factory	Chongqing Cigarette Factory	Guiyang Cigarette Factory
Zunyi Cigarette Factory	Guiding Cigarette Factory	Bijie Cigarette Factory	Qingsong Cigarette Factory
Huangping Cigarette Factory	Tongren Cigar Factory	Guiding Cigarette Factory	Branch of Kunming Cigarette Factory
Yuxi Cigarette Factory	Qujing Cigarette Factory	Zhaotong Cigarette Factory	Chuxiong Cigarette Factory
Dali Cigarette Factory	Honghe Cigarette Factory	Huize Cigarette Factory	Suijiang Cigar Factory
Baoji Cigarette Factory	Hailin Cigarette Factory	Linkou Cigarette Factory	Muleng Cigar Factory
Shanghai Cigarette Factory	Nanjing Cigarette Factory	Xuzhou Cigarette Factory	Huaiyin Cigarette Factory
Hangzhou Cigarette Factory	Ningbo Cigarette Factory	Jiaxing Cigarette Factory	Hefei Cigarette Factory
Bengbu Cigarette Factory