Plans are in place to expand a consumption tax on luxury items as part of a wider move to increase a range of taxes, AFP reported. Advocating adjustments to personal income tax, property tax and consumption tax, Wang Li, vice head of the State Administration of Taxation, observed that it was necessary to "strengthen the role of taxation in reducing poverty". As part of this, items such as jewelry and VIP club memberships are expected to be added to a list of taxable luxury items. On April 1, the government imposed consumption taxes on a number of items including wooden floor panels, yachts, luxury watches, golf clubs and oil-based products. China collected US$18.2 billion in consumption taxes during the first nine months of the year. The full year figure for 2005 was US$20.7 billion.
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