China Decreases Tariffs on Imported Consumer Goods to Encourage Local Demand
Published By : 30 Apr 2015 | Published By : QYRESEARCH
The government in China is planning to reduce import tariffs on trendy consumer goods, and to increase imports of such kind of goods, as the part of its efforts to fuel domestic consumption. The state council of China, or cabinet of China, had announced on Tuesday after a meeting that it would commence a trial reduction of the tariffs on several types of goods in trend by June, 2015. It had also announced an expansion in the categories of imports getting advantages from tax reductions.
The statement announced that full details would be followed, but the State Council also specified that it would adjust its policy regarding consumption tax on goods such as cosmetics, which has to face import tariffs equal to 30%, and clothing. It also promised to install more duty-free shops at ports of entry, and to facilitate imports through e-commerce channels, by enhancing inspection and quarantine policies, and eradicating unreasonable charges on such kind of imports.
The government of China stated that the measures were developed to stabilize the economic growth by stimulating domestic demand, and it would also assist in ensuring employment and enhancing the lives of people in China, as stated by the official Xinhua News Agency.
This move may also assist in reducing trade surplus of China. Apart from this, it is propelling domestic consumption, which has long been followed by analysts as the key to balance economy of the China in the long term. The retail sales in China stood at US$1.15 trillion in the 1st quarter of the year 2015, a rise of 10.6 per cent in the previous year.