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Fair Competition and Preferential Taxation Policy for Small & Medium Retail Stores in China: A Comparative Study

Journal of Chinese Tax and Policy

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Title Fair Competition and Preferential Taxation Policy for Small & Medium Retail Stores in China: A Comparative Study
 
Creator GEORGE, TIAN
 
Description In recent years, the use of slotting allowances and other shelf-access payments byretail stores and supermarkets has reportedly increased in China. Many Chinesecommentators criticised such conduct as significantly distorting the fair competitionorder in the retail market and harming the legitimate benefits of consumers, suppliersand small-medium retailers in China.1Chinese governmental agencies have attempted to eliminate slotting allowances bylaunching national campaigns to investigate and crack down on the illegal conduct oflarge-scale retailers against suppliers. 2 However, it is still not clear whethergovernment intervention is the most appropriate and effective solution. After severalcampaigns, it seems that the slotting fee problem still exists. Indeed, slotting allowances have been a very controversial issue around the world. It remains adebatable question whether competition law is the best instrument to resolve theslotting allowance issue.3This paper examines whether preferential taxation policy for SME retail stores couldserve as an alternative solution for the slotting allowances issue in China. Part Iexamines the status quo of supermarket slotting allowances in China and Part IIcompares this with similar practices in other jurisdictions — particularly in the UnitedStates (the US) — by examining both the benefits and the harms of slotting fees. PartIII examines the disadvantageous situations of SME retailers and suppliers in theChinese retail market and explores the main reasons and rationales for them. It furtherconsiders the major problems with the existing laws and policies on slotting fees andthe SMESME businesses in China, focusing in particular on the problems with thecurrent taxation system. Part IV and Part V compare and critically reflect on how othercountries use special laws or taxation policies to help promote the development ofSME enterprises and to contribute to the resolution of slotting fee issues. By extractinglessons from the relevant laws and policies in Germany, Japan, the United Kingdom(UK) and the Hong Kong Special Administrative Region of China (HK), the paperprovides some practical suggestions for future law and policy reforms. Finally, itconcludes that a more heterogeneous approach should be taken and that it is importantto make competition law and taxation policy work collaboratively to solve theseproblems.
 
Publisher Journal of Chinese Tax and Policy
 
Contributor —
 
Date 2018-05-22
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Identifier https://openjournals.library.sydney.edu.au/index.php/JCTP/article/view/12746
 
Source Journal of Chinese Tax and Policy; Vol 3, No 3 (2013): Chinese Tax and Policy s
1839-065X
2205-2550
 
Language EN
 
Rights Copyright (c) 2018 TIAN GEORGE