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- China cuts controversial tax on personal items bought overseas in move to boost consumption
China cuts controversial tax on personal items bought overseas in move to boost consumption
China has cut a controversial tax on personal items bought overseas, ranging from iPads to books, in an effort to boost consumer confidence.
The government will trim the “tax on baggage and articles accompanying incoming passengers and personal postal articles”, a three-in-one tax consisting of value-added tax, consumption tax and import duties on Tuesday, according to an online notice posted by the Ministry of Finance.
The tax rate on products including computers, foodstuffs, gold and silverware, furniture and medicines will be lowered to 13% from 15%. The rate for commodities including textiles, electric appliances and bicycles will be cut to 20% from 25%, according to the statement. The tax rate for wine, cigarettes, jewellery, golf equipment, luxury watches and high-grade cosmetics will be kept at 50%.
This is the second round of tax cuts on consumer products bought overseas in six months, after Beijing initially lowered the rate on November 1, 2018.
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