China to Reduce Import Taxes

 

China to Reduce Import Taxes

By Jennie May Thompson

Photo Of Mainland Chinese Shoppers flocking to Hong Kong to buy Luxury Goods, where they are cheaper.

China has decided to cut back on import duties from cities like London. The new tax system will mean that duties on imported cosmetics, milk powder, watches, clothes, suitcases and shoes are expected to be reduced or even scrapped entirely. Government officials, luxury good makers and commerce ministries have reportedly held meetings to discuss China’s new tax model.

Due to expensive import taxes in China, prices of luxury brands of watches, suitcases, clothes, liquor and consumer electronics are 45% higher than in Hong Kong, 51 percent higher than U.S. prices, and 72 percent higher than French prices.

Chinese authorities have explained that due to high amounts of taxation “unusual import methods” are on the increase. The authorities of the People’s Republic of China think that tariff and tax cuts would encourage usual import procedures, while trimming prices of imported products and encouraging domestic consumption. This will boost the number of exports from countries such as ourselves, and make designer brands more accessible within China.

The only down-side is that at the moment we have an increased number of tourists (mainly from China and U.S.A) coming to Britain to buy luxury goods. Unfortunately, if the Chinese decide to cut taxes on imported goods, we could possibly see a decrease in the number of Chinese tourists, as international luxury products will be more affordable and available locally. Will chinese shoppers still venture to the West End?

See the following article for information the current luxury market

https://www.fashioncapital.co.uk/News/24022-Luxury-Market-to-Double-By-2015.html