Home / Business / Food & Beverage Tools: Save | Print | E-mail | Most Read | Comment
White liquor makers face profit squeeze
Adjust font size:

The government's decision to rework the alcohol taxation policy may lead to prices of white liquor going up in the next few months, according to industry analysts.

The situation has been such that people like Li Mu, manager of a Moutai franchiser in Beijing's Chaoyang district, have been pulling all stops to shore up their white liquor stocks before the new policy comes into effect since August 1.

"Though we haven't received any formal notice from the manufacturers about a price increase, they have stopped new supplies for more than 20 days now," said Li. "As far as I know, they may probably increase the price by 2 to 5 percent, while the top brands may see bigger price hikes."

Currently, the tax on white liquor includes the specific duty of 1 yuan per kilogram, and the 20-percent ad valorem duty on the factory price. According to the new policy, the government has changed the tax base and duties on white liquor while retaining the 20-percent ad valorem duties.

The new policy aims to tackle tax evasion by white liquor makers. Under the earlier dispensation, white liquor makers could avoid paying much of the tax by selling the product to distributors at low prices and then resell them to shops at a much higher price.

A senior executive of a liquor maker estimated that the consumption tax paid by each enterprise would probably double after the new policy is put into practice.

At present, consumption tax is less than 10 percent of liquor makers' sales turnover. The sales turnover of Wuliangye, a famous brand in the industry, was 7.93 billion yuan in 2008 and it paid 417 million yuan as consumption tax last year.

According to Hou Peng, analyst, Bohai Securities, the new policy will increase the financial burden of white liquor manufacturers and cripple their profits.

"Our calculation shows that the new taxation policy may lead to a 15 to 20 percent profit drop for listed companies," said Hou. "Higher profits mean higher taxes for liquor manufacturers," he said.

Li Hui, analyst, Southwest Securities, feels that the new policy may lead to a decrease in the retained profits of major white liquor makers.

"Among them, Wuliangye may face the biggest impact. Additional tax caused by the minimum taxable value may take up some 23 percent of its retained profits," said Li. "Other firms like Luzhoulaojiao, Swellfun and Kweichow Moutai are also expected to see their retained profits fall by 20 to 10 percent."

Increasing prices to transfer part of the financial burden to customers would be a natural choice for white liquor makers, Li said.

In the past two months, the retail price of Moutai has jumped to 660 yuan to 680 yuan per bottle in some shops, from more than 500 yuan two months back.

With demand still exceeding supplies, Li is worried that his existing stocks may hardly meet customer demands in September and October.

(China Daily July 31, 2009)

Tools: Save | Print | E-mail | Most Read Bookmark and Share
Comment
Pet Name
Anonymous
China Archives
Related >>
June 7 Tokyo 2nd China-Japan High-Level Economic Dialogu

June 30 Shanghai 2009 Automotive Engine Technology Seminar

September 8-12 Xiamen China Int'l Fair for Investment and Trade
- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?
主站蜘蛛池模板: 欧美亚洲综合在线观看| 精品日韩在线视频| 国产自无码视频在线观看| 上课公然调教h| 黄网站欧美内射| 国产美女精品一区二区三区| www.激情小说.com| 成人美女黄网站视频大全| 久久精品94精品久久精品| 欧男同同性videos免费| 亚洲狠狠婷婷综合久久久久| 男女一级爽爽快视频| 午夜在线观看视频免费成人| 18禁无遮挡无码国产免费网站| 天天天欲色欲色WWW免费| 一级毛片在线免费播放| 揄拍自拍日韩精品| 久久亚洲国产精品成人AV秋霞| 特黄特色大片免费播放器999 | 青青操视频在线免费观看| 国产黄色片在线观看| 99国产成+人+综合+亚洲欧美| 日本在线观看a| 久久精品无码一区二区三区不卡| 欧美中文字幕视频| 亚洲成人网在线观看| 欧美黑人巨大xxxxx视频| 亚洲综合视频在线| 男人与禽交的方法| 免费在线观看污视频网站| 高清视频一区二区三区| 国产欧美日韩精品丝袜高跟鞋| 1024手机看片基地| 国产香港日本三级在线观看| 99久久99久久精品国产片| 天堂8在线天堂资源bt| heyzo亚洲精品日韩| 女人张腿让男桶免费视频观看| 一个人看的www在线观看免费| 广西美女一级毛片| 一区二区不卡久久精品|