Composite tariff is also called mixed tariff. It is a tariff levied on the same imported goods using two standards: ad valorem and specific tariff. The Chinese name of composite tariff is more complicated and is also called mixed tariff. 1. Basic Introduction A tariff levied under two standards. When levying, it can be mainly based on ad valorem tax and additionally levied on specific tax; or mainly based on specific tax and additionally levied on ad valorem tax. The calculation procedures are relatively complicated, but when prices fluctuate, it can reduce the impact on fiscal revenue. 2. Calculation formula The formula for calculating the compound tax amount is as follows: Tax payable = quantity of taxable imported goods × unit tariff amount + quantity of taxable imported goods × unit tax-paid price × applicable tax rate References |
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