China has lowered duties on personal imports of digital cameras, computers and mobile phones by more than 50 per cent, new tax rules published by China’s customs administration showed.
The overall import tax rate for consumer electronics was halved to 10 per cent, effective from April 15. The taxable base for most electronic products was also reduced, with the tax base for some mobile phones cut to 1,000 yuan, from 2,000 yuan.
The new tax rules, which apply only to products imported as personal luggage and by post rather than commercial bulk shipments, also increased duties on some cosmetic products such as perfumes, for which the tax base was doubled to 300 yuan.
Growing affluence among Chinese consumers has led to a surge in overseas shopping trips for luxury goods to circumvent steep domestic taxes that make such products less affordable at home, as Reuters stated.
The Commerce Ministry has been lobbying for import tax cuts on consumer goods to boost domestic consumption, but the Finance Ministry has so far resisted such a move. Import taxes accounted for 14 percent of first-quarter fiscal revenue.