Lower taxes, more spending power abroad for Chinese

Lower taxes, more spending power abroad for Chinese

Chinese tourists will have more buying power and are likely to spend more overseas, as the government has cut taxes on personal items bought overseas. China has cut taxes on bought items such as computers, foodstuffs, gold and silverware, furniture and medicines from 15 to 13 percent.

The rate for commodities including textiles, electric appliances and bicycles will be cut to 20 per cent from 25 per cent. The measures, aimed at lowering a three-in-one tax consisting of value-added tax, consumption tax and import duties, is intended to boost consumer confidence. The rate for commodities including textiles, electric appliances and bicycles will be cut to 20 per cent from 25 per cent, according to the statement.

The tax rate for wine, cigarettes, jewellery, golf equipment, luxury watches and high-grade cosmetics will be kept at 50 per cent.

According to a report by South China Morning Post, this is the second round of tax cuts on consumer products bought overseas in six months, after Beijing initially lowered the rate in November 2018.

Further reading on scmp.com

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