Import tax cut on some goods to spur consumption
China cut import taxes on clothing, cosmetics and some other goods starting on Monday to boost domestic consumption.
The latest cuts to import duties will reduce fiscal revenue while boosting domestic consumption, said ViceFinance Minister Shi Yaobin at a press conference.
The Ministry of Finance said that it will slash duties by half — on average — on suits, fur garments and shoes. A tariff on cosmetics will fall to 2 percent from 5 percent, while a duty on diapers will decline to 2 percent from 7.5 percent.
The cuts will reduce fiscal revenue, said Shi.
With strong purchasing power, Chinese mainland travelers often buy goods as diverse as diapers and handbags abroad to avoid import and consumer taxes back home.