China cuts import taxes on consumer goods

China cuts import taxes on consumer goods

Fri, 01/12/2017 - 13:25

Chinese consumers, as well as Australian exporters, have welcomed the tariff cuts.

Cuts to Chinese import tariffs on a wide range of consumer goods, including baby formula, whiskey, pharmaceuticals and health supplements, have come into effect, with the move designed to encourage consumers to spend more at home than abroad.

China’s Ministry of Finance announced last week that tariffs would drop from an average of 17.3 per cent to 7.7 per cent on a range of 187 consumer products.

Tariffs on whiskey have fallen from 10 per cent to 5 per cent, while import taxes on baby formula have been reduced to 0, down from 22 per cent previously.

The Ministry said the tariff reductions were focused on products which could not be produced in China, boosting consumer choice.

It is the latest initiative unveiled by the Ministry, which has been implementing fiscal and financial measures to stimulate imports for the last two years.

Over that time, import taxes on more than 300 different types of consumer goods have been reduced.

President Xi Jinping also mandated at the 19th National Party Congress in October for policies to be implemented to meet Chinese citizens’ demands for improved living standards and access to better-quality products.