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A female shopper looks into the apartment store's window at a dress. [Photo: Baidu]
Starting from next week, China will reduce import tariffs and further adjust tax levels in the commodity sector to boost domestic consumption.
CRI's Min Rui has more.
China's Vice Finance Minister Shi Yaobin says the country will reduce import tariffs on more than 10 imported goods.
This includes skin care products, clothes and diapers.
"China will adjust the consumption taxation scope. On the one hand, we will levy taxes on some luxury goods and high-end services; on the other hand, we will adjust the taxation on cosmetics. Third, we are going to open a certain amount of import duty free shops at the ports, reasonably increase the varieties of duty-free goods that are under growing demands by our citizens, and moderately allow them to buy more duty-free goods."
The import duties cuts were first announced on Monday by the Ministry of Finance.
They will cut import taxes on clothing, cosmetics and some other goods from June 1.
Duties on suits, fur garments and shoes on average will be slashed by half to meet the diversified demands of domestic consumers.
Vice Finance Minister Shi Yaobin also points out the ministry will further adjust taxation in the commodity sector, in a bid to promote domestic consumption.
There is no doubt that these moves will reduce revenue flows.
But Shi Yaobin does not expect revenue to decrease excessively, given that increased levels of imported goods mean increased import tax revenue regardless of the tax rate.
With strong purchasing power, Chinese mainland travelers often buy diapers and handbags abroad to avoid import duties back home.
To counter the fast growing foreign purchase phenomenon, Vice Commerce Minister Wang Shouwen says China will further develop domestic brands.
"Now domestic consumers tend to be rational in their consumption. Their demands have declined, but the market has become more competitive. Foreign brands now have more channels to enter the Chinese market. Meanwhile, China's own brands are thriving. The development of the Chinese brands helps increase supply and force foreign brand supplier to cut their prices."
Last year, mainland tourists spent some 165 billion U.S. dollars abroad, up 28 percent from the previous year.
For CRI, I'm Min Rui.