Theoretically the most efficient commodity tax is neutral tax whose excessive burden is zero,but this is only an ideal condition which does not exist in reality.

On the basis of the partial equilibrium theory,this paper draws support from the model of linear expenditure system(LES),and makes use of the cross section data and time series data to analyze the supply and demand elasticity of all kinds of consumables,and thus further demonstrates the truth about the tax burden of the commodity tax.

Optimal Tax Theory mainly includes the combinatorial theory of optimal commodity tax and optimal income tax, the theory of optimal commodity tax and the theory of optimal income tax.

Some mainstream literatures of public economics both in and outside China define the optimal commodity tax as follows: subjecting to budget constraint, how the government can maximize social welfare through choosing optimal commodity tax structure.

The optimal commodity tax theory can serve not only as the valuable reference for policy makers but also as a bridge linking the theoretical research with concrete policy proposals.

Commodity tax consists of inner commodity tax and import-and-export commodity tax, both of which can put importance on the production and consumption.