CITIC Securities: Reform of consumption tax still awaits the right timing, bullish on the long-term investment value of tax-free channels and brand retail.

CITIC Securities research report stated that the current round of consumption tax reform is expected to focus on three main themes: "moving the collection point back, transferring income incrementally to local governments, and synchronously strengthening the tax administration system." The long-term impact of consumption tax reform will promote tax base restructuring, channel normalization, and benefit redistribution. For local governments, moving the collection point and incrementally transferring income will help increase enthusiasm for consumer-side governance; for enterprises, those with strong compliance capabilities and controllable compliance channels will benefit more. Overall, the long-term benefits of consumption tax reform are the construction of a favorable consumer environment and the standardization of the distribution system, which is expected to promote consumption gradually returning from "gray diversion" to formal channels that are "taxed, manageable, and sustainable." The reform of consumption tax shifting to a later stage, represented by the liquor industry, is still awaiting the right timing, with optimism about the long-term investment value of duty-free channels and branded retail outlets.