Ministry of Finance and State Administration of Taxation, Adjustment of the Consumption Tax Policy on Alcoholic Products Circular

Issued: 11 May 2001
Effective: 1 May 2001

Main contents: According to the Circular, the consumption tax rate policy on grain-based alcohol and potato-based alcohol is adjusted from one solely reliant on ad valorem rates to one with specific rates plus ad valorem rates. The specific rate is Rmb 0.50 per 500g for both types of alcohol, and the ad valorem rate is 25% for grain-based alcohol, 15% for potato-based alcohol (Section One). These rates also apply to imported alcohol (Section Two). The Circular also adjusts the consumption tax rates on beer, which rates vary according to the ex-brewery prices of the beer. For example, for beer whose ex-brewery price is Rmb 3,000/ton or more, the tax rate is Rmb 250/ton (Section Four). Tax credits are no longer available to any tax-paid alcohol and alcohol purchased before 1 May 2001 for bottling or further processing (Section Five).