During the early period, Beijing Government followed the conventional taxation of alcoholic beverages carried out by late Qing Dynasty, some traditional alcoholic beverage taxes being still used, on the other hand, it established some new alcoholic beverage policies in reference to western countries' alcoholic beverage taxation. The main point of them was " State Monopoly Sales of Alcoholic Beverages ."
State Monopoly Sales of Alcoholic Beverages started in 1915, the administration agency responsible for the exertion of the system was the Tobacco and Alcoholic Beverage Monopoly Sale Bureau (Shortened TABMSB ) of Beijing Government and that of local governments all over the country. The setup of the administration agency is as the following shows:
TABMSB of Beijing Government
Branch of TABMSB
Section of TABMSB
Office of TABMSB
Contract Businessmen ( Specially Permitted )
The state monopoly sales system carried out by Beijing Government was, after all, a specially- permitted administrative system. The government needn't provide funds, places, didn't directly manage production, purchase, transportation and sales of alcoholic beverages, those specially-permitted merchants-managers of Section or Office of TABMSB entrusted should be responsible for dealing with the business related to alcoholic beverages. The manager should first pay a certain sum of cash pledge to the body of TABMSB. After permitted, he would be issued a specially -permitted license. In 1926, Beijing Government issued 《 Regulations on Purchase and Sales of Alcoholic Beverages 》 - - -stipulating that the alcoholic beverage whether domestically made or abroad would be taxed 20% of the selling price. The shops doing purchase and sales of alcoholic beverages should be included to pay the tax. In the following year, 《 Regulations of Taxation on Breweries and Distilleries 》 was also issued, stipulating all the breweries, wineries and distilleries should be taxed 10% of producer price. This shew that a two- tax system was primarily established---a tax on sales and a tax on production..
The monopoly sales regulations of Beijing Government were only exerted on production and sales of Chinese alcoholic beverages, but not on the foreign beer. For the imported alcoholic beverages, only customs were collected. In 1926 (in the 15th year of Guomingdang ), the imported and copied-in-China alcoholic beverages started to be taxed 20% of selling price..
The collection tax rate of monopoly sales was fixed at 20% of selling price, revised per year. In the same year, 《 Provincial Bidding Regulations on State Monopoly Sales of Tobacco and Alcoholic Beverages 》 was also issued , stating the competition of tender should be operated openly, admitting those offering the highest price as the winners, who should pay a sum of 20% of the total year's business amount as the pledge cash. The contractor should pay no less than 1/12 of the offering price as the tax per month..
In August, 1929, the 《 Regulations 》 were again revised, the newly-revised 《 Regulations 》 was issued. Meanwhile 《 Checking Regulations on State Monopoly Sales of Tobacco and Alcoholic Beverages 》 and 《 Penalty Regulations on State Monopoly Sales of Tobacco and Alcoholic Beverages 》 were made. There was a striking difference between the newly-revised 《 Regulations 》 and the old one. In the newly-revised 《Regulations》, the original body 《 Provincial Bureau of State Monopoly Sales of Tobacco and Alcoholic Beverages 》 had been changed into 《 Tobacco and Alcoholic Beverages Business Bureau 》 , and 《 State Monopoly Sales Section 》 changed into 《State Monopoly Sales Business Checking Office 》, the original office abolished. The newly-revised Regulations stipulated that both producers and merchants of tobacco and alcoholic beverages should apply to the Section or Checking Office for registration and make tables of production on sales of sorts and quantity of tobacco and alcohol beverages, then present them to the authorities. The selling prices were decided by provinces. The monopoly sales tax was fixed 20% of the selling prices, which was revised per year..
In 1929, the machine-made alcoholic beverage tax was changed to the Foreign alcohol tax by Nanjing Government, due to the narrow rang of meaning stating 《 Temporary Regulations Taxing on Foreign Alcohols 》 . The foreign alcohols sold in China ( in-cluding Chinese-copied or foreigner -made or imported foreign alcohols ) would be taxed 30% of the selling price directly collected from the merchants who did the business, and the producers or wineries wouldn't be taxed. 《 Checking Regulations of Taxing on Foreign Alcohols 》 and 《 Penalty Regulations on Taxing on Foreign Alcohols 》came into practice parallel to 《Temporary Regulations of Taxing on Foreign Alcohols 》..
In 1932 , 《 Regulations of Taxing on Alcoholic Beverage Producers 》 was issued and put into practice . The taxing percentage was up to 30% of producer price , taxed only once, valid throughout the country, which was in the charge of an official sent by Monopoly Sales Bureau stationing in the distillery or winery. Each day the producer should reported the true quantity of sales of the alcohol to the official stationing in the winery who was responsible for checking and making a list to present to his supervisors for checking by the end of each month. At the end of each month the producer should list the whole quantity of sales and total taxes sum and present them to the responsible official agency for check and collection..
In the same year,Temporary Regulations of Taxing on Beer and Action Regulations of Officials Stationing in the Winery Responsible for Collection of Tax 》were also made. Since then the tax in beer and tax.
In 1934, 《 Checking Regulations on Fixed Tax on Domestic Alcoholic beverages 》 was issued, the tax rate of them varied with different provinces and areas..
In 1936, 《 Finance Ministry's Revised Temporary Regulations of Tax on Beer 》 was declared, the Administration Bureau of Taxation was responsible for the beer tax, sending the agent stationing in the winery for check and supervision. The beer tax varied with the producer price, its rate was 20%. In the following year, the beer tax income was different because it was collected based on the different marketing prices. Later it was changed into collection based on the sales..
In 1937, the Anti-Japanese War broke out, Guomingdang Government increased the domestic alcoholic beverage tax by 50% in all provinces for the excuse that the government was in war and badly needed financial revenues..
The Regulations made in 1941 also stipulated that alcoholic beverages were taxed 40% of average marketing price of production area nearby, its calculation formula was:.
Average market wholesale price of production area × 100%= the fixed price taxed +.
In order to match the 《Temporary Regulations》 made in 1941, 《Temporary Procedures of Taxing and Checking on Domesticly-made Tobacco and Alcoholic Beverages》 was issued by the Finance Ministry, stipulating the taxing procedures, methods of transtaxation on tobacco and alcohol beverages or free taxation and rules of check and penalty..
In 1942, 《Ways of Tax Contract of Domesticly- made Tobacco and Alcoholic Beverages 》was issued by the Finance Ministry, stipulating the taxing procedures, methods or free taxation and rules of check and penalty..
In 1942, 《Ways of Tax Contract of Domesticly- made Tobacco and Alcoholic beverages 》was tried out, firstly exerted in Guangxi Province, then spread in Sichuan Province. Guizhou Province and Jiangxi Province one after another. This kind of taxation was somewhat similar to the tax- contract system exerted in the countryside of Song Dynasty. It was rather hard to perform it. So the taxation was ended in 1945..
In September, 1942, Finance Ministry issued 《 Temporary Rules of Supervision of Domesticly- made Alcoholic Beverages 》, which stipulated that the producers of alcoholic beverages should be registered again, those not officially permitted were not allowed to brew alcoholic beverages . Those breweries whose yearly production totality was below 24000 jin ( a jin equals half a kg . ) were not qualified to register..
After the victory of the Anti-Japanese War , some clauses of 《Temporary Rules 》 were revised, the main purpose of doing so was to raise the tax rate. It was perhaps caused by the fact that rate of Chinese alcoholic beverages and foreign alcohols were both considered lower in comparison with the tax rates in other countries. In 1946, at the Second Plenary Session of Guomingdang Central Committee, a decision to raise the luxury tax was passed by the reason of reconstruction after the victory costing more money and enriching the national financial revenues to balance the income and expenditure. The tax on Chinese alcoholic beverages was increased up to 80% of selling price and the tax on foreign alcoholic drinks and beer was increased up to 100% of selling price ( the tax rate of both foreign alcohols and Chinese alcoholic beverages was 60% of selling price during the Anti-Japanese War ). In August, 1946, Guomingdang Government issued 《Taxing Regulations of Domesticly- made Tobacco and Alcoholic Beverages 》, which stated that alcoholic beverages should be grimly taxed at a rate of 80% of the average producer price checked in the production area . (Some related data in this chapter was abstracted from 《Chinese Alcoholic Beverage Monopoly Sales 》 published by Chinese Commercial Press , first edition, 1982 )