China’s State Council has issued a new plan regarding cuts to consumption taxes and fees, and it will hurt mid- to small-sized baijiu firms the most, CICC says.
- The plan, which includes postponing the collection of consumption tax, will add to alcohol companies’ tax burden, analysts including Xing Tingzhi in a note.
- The plan states that consumption tax collected at the production stage for some goods will be postponed and collected at the wholesale or retail stage.
- It will weaken the competitiveness of small and mid-sized regional firms and those with irregular tax payments.
- There’ll be a larger impact on...