Circular of the State Administration of Taxation on Printing and Distributing Stipulations about Consumption Tax
Circular of the State Administration of Taxation on Printing and Distributing Stipulations about Consumption Tax
Circular of the State Administration of Taxation on Printing and Distributing Stipulations about Consumption Tax
Guo Shui Fa [1993] No. 156
December 28, 1993
Tax bureaus of all provinces, autonomous regions and municipalities directly under the Central Government, to tax bureaus of all cities specifically designated in State plan, and to tax bureaus of cities of Harbin, Changchun, Shenyang, Xi'an, Chengdu, Nanjing, Wuhan and Guangzhou,
The Stipulations on Issues Concerning Consumption Tax are hereby printed and distributed to you And shall be effectively implemented.
Appendix I:
Provisions on Issues concerning Consumption Tax
I. Standards for the Differentiated Tax on Cigarettes.
1. Where the price of the cigarettes marketed by a tax-payer is subject to frequent fluctuations due to the easing of price control on cigarettes, the specific type of tax and tax rate applicable to cigarettes of a specific brand and specification sold by the taxpayer shall be determined on the basis of the weighted average sales price in the current month. However, such weighted average price shall not apply if the cigarettes are under any of the following circumstances:
(1) the selling price is obviously below average without proper reasons;
(2) no selling price is available.
In practice, at the beginning of a month, advance payment of tax may be made in accordance with the tax classification and applicable tax rate of the previous month or the most recent month from the month of sale.
After the end of the month, the taxpayer shall, on the basis of the actual selling price, determine the tax classification and the applicable tax rate and calculate the tax payable for the month.
2. When the price of cigarettes is raised due to addition of filter tips, change of packaging or other reasons, the tax type and tax rate applicable to such cigarettes shall be determined in accordance with the new selling price thereof.
3. For cigarettes produced by a taxpayer for its own consumption, the tax type and the tax rate applicable to such cigarettes shall be determined in accordance with the selling price of cigarettes in the same brand and specification. When no selling price is available for cigarettes of the same brand and specification as the aforementioned cigarettes, the tax type and rate shall all be taxed in accordance with the tax rate applicable Type A cigarettes.
4. Cigarettes produced under consignment shall be taxed in accordance with the tax type and tax rates applicable to cigarettes of the same brand and specification as the aforementioned cigarettes produced under consignment. Where no such cigarettes of the same brand and specifications are available, the cigarettes produced under consignment shall be taxed in accordance with the tax rate for Type A cigarettes.
5. The ax rate applicable to defective or inferior-quality cigarettes shall be determined in light of the tax type of cigarettes of standard quality of the same brand and specification.
6. The cigarettes of the following categories, regardless of their tax type, shall all be taxed at the rate of Type A cigarettes:
(1) Imported cigarettes;
(2) Unmarked cigarettes;
(3) Hand-made cigarettes;
(4) Cigarettes produced by enterprises and individuals not approved by the State Council as under State plan. The list for enterprises producing cigarettes under State plan is attached hereto.
7. Any adjustment to the standard for the tax classification of cigarettes shall be determined by the State Administration of Taxation.
II.
......
Guo Shui Fa [1993] No. 156
December 28, 1993
Tax bureaus of all provinces, autonomous regions and municipalities directly under the Central Government, to tax bureaus of all cities specifically designated in State plan, and to tax bureaus of cities of Harbin, Changchun, Shenyang, Xi'an, Chengdu, Nanjing, Wuhan and Guangzhou,
The Stipulations on Issues Concerning Consumption Tax are hereby printed and distributed to you And shall be effectively implemented.
Appendix I:
Provisions on Issues concerning Consumption Tax
I. Standards for the Differentiated Tax on Cigarettes.
1. Where the price of the cigarettes marketed by a tax-payer is subject to frequent fluctuations due to the easing of price control on cigarettes, the specific type of tax and tax rate applicable to cigarettes of a specific brand and specification sold by the taxpayer shall be determined on the basis of the weighted average sales price in the current month. However, such weighted average price shall not apply if the cigarettes are under any of the following circumstances:
(1) the selling price is obviously below average without proper reasons;
(2) no selling price is available.
In practice, at the beginning of a month, advance payment of tax may be made in accordance with the tax classification and applicable tax rate of the previous month or the most recent month from the month of sale.
After the end of the month, the taxpayer shall, on the basis of the actual selling price, determine the tax classification and the applicable tax rate and calculate the tax payable for the month.
2. When the price of cigarettes is raised due to addition of filter tips, change of packaging or other reasons, the tax type and tax rate applicable to such cigarettes shall be determined in accordance with the new selling price thereof.
3. For cigarettes produced by a taxpayer for its own consumption, the tax type and the tax rate applicable to such cigarettes shall be determined in accordance with the selling price of cigarettes in the same brand and specification. When no selling price is available for cigarettes of the same brand and specification as the aforementioned cigarettes, the tax type and rate shall all be taxed in accordance with the tax rate applicable Type A cigarettes.
4. Cigarettes produced under consignment shall be taxed in accordance with the tax type and tax rates applicable to cigarettes of the same brand and specification as the aforementioned cigarettes produced under consignment. Where no such cigarettes of the same brand and specifications are available, the cigarettes produced under consignment shall be taxed in accordance with the tax rate for Type A cigarettes.
5. The ax rate applicable to defective or inferior-quality cigarettes shall be determined in light of the tax type of cigarettes of standard quality of the same brand and specification.
6. The cigarettes of the following categories, regardless of their tax type, shall all be taxed at the rate of Type A cigarettes:
(1) Imported cigarettes;
(2) Unmarked cigarettes;
(3) Hand-made cigarettes;
(4) Cigarettes produced by enterprises and individuals not approved by the State Council as under State plan. The list for enterprises producing cigarettes under State plan is attached hereto.
7. Any adjustment to the standard for the tax classification of cigarettes shall be determined by the State Administration of Taxation.
II.
......