(Yicai Global) May 26 -- China plans to extend the sales tax to include private aircraft as well as high-end leather products and beauty services.
Dr. Zhang Xuedan, director at the Public Revenue Research Center of the China Research Institute of Fiscal Science, told Yicai that the sales tax may be levied on environmentally unfriendly products such as disposable plastic bags, energy-consuming products such as high-emission vehicles, luxury goods such as private aircraft and high-grade leather products, and even high-end consumer goods and services including upscale clubs and beauty services.
Reform of the taxation system has been an ongoing process for a number of years, and changes to the sales tax have been identified as a priority. In 2015, revenue from the sales tax totaled more than CNY1 trillion (CNY152 billion), up 18.4 percent year-on-year.
Dr. Zhang claims the sales tax is not on a one-way road to expansion, however. As consumer spending has continued to rise, certain products once seen as luxury items have become life necessities and have been removed from the list. For example, the Chinese government exempted low-emission motorcycles and tires from the sales tax at the end of 2014.