Chinese residents will pay lower tax rates beginning April 9 on a wide range of consumer goods brought into the country by mail order or as accompanying baggage.
The Ministry of Finance said April 8 that the State Council approved a reduction from 15 percent to 13 percent in the tax on foreign books, computers, cameras “and other intellectual technology” products, food, gold and silver, furniture, and toys. The VAT rate on consumer imports of textiles, electric appliances, television cameras and other electrical appliances, and bicycles will drop from 25 percent to 20 percent.
The tax rate for other common imports, including cigarettes, cosmetics, wine, jewelry, gold equipment, and high-end watches will remain unchanged at 50 percent, the MOF said.
The agency said the reductions are intended to increase import and consumption levels. The so-called postal tax is made up of VAT, consumption tax, and import duties. “In order to maintain a fair competitive market environment, the tax rate for each type of postal tax should be roughly the same as the comprehensive tax rate for similar imported goods,” the MOF said.
In March the government said the 16 percent VAT rate on sales of imported goods would be cut to 10 percent, effective April 1, and that the 10 percent rate would be reduced to 9 percent.
The government has been lowering taxes over the last year to stimulate economic growth, which has cooled because of trade tensions with the United States, excessive corporate debt levels, and a global slowdown that has cut into demand for Chinese goods.