China may cut import, other taxes
Posted by | Posted in Business News | Posted on 18-02-2011
BEIJING, Feb. 21 (UPI) — China may cut import duty and consumption tax on items such as cosmetics and milk powder to check their imports through agents or other ways, officials said.
Officials are concerned such “unusual import methods” could result in loss of several billion yuan in tax revenue annually, Shanghai Daily reported quoting China National Radio.
The radio report said the State Administration of Taxation wants to cut consumption tax on cosmetic products and eliminate it for gold and jewelry to bring down the prices of imported products and promote domestic consumption.
Purchases through overseas agents totaled about $1.8 billion last year, the report said. These agents are able to charge lower prices as the products are brought in personally without paying duty or other administrative costs.
Imported cosmetics, which are much in demand in China, currently are subject to more than 50 percent import tax.
Imported milk powder is also in demand after the 2008 melamine contamination scandal. Japanese milk powder bought in Hong Kong costs much less than half of what its costs at authorized shops on the mainland because of the duties and taxes, the report said.
The Hong Kong Standard reported many residents from nearby provinces regularly travel to Hong Kong and Macau to buy such items.
Last month, China cut import tax on computers, video, digital cameras and other IT products to 10 percent from 20 percent.
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